Car Insurance Canada

There are 10 provinces in Canada, and every one of them has a very distinct way of managing auto insurance regulations. Based on where you live, you could be required to buy auto insurance through a government-run agency. Or you could choose to obtain auto insurance through a private company. While the provinces set a minimum standard for auto insurance coverage, it’s always considered wise to secure coverage far in excess of the province’s minimum requirements.

Several Canadian provinces (British Columbia, Saskatchewan, Manitoba and Quebec) provide a public auto insurance system while in the rest of the country auto insurance is provided privately. Basic auto insurance is mandatory throughout Canada with each province’s government determining which benefits are included as minimum required auto insurance coverage and which benefits are options available for those seeking additional coverage. Accident benefits coverage is mandatory everywhere except for Newfoundland and Labrador. All provinces in Canada have some form of no-fault insurance available to accident victims. The difference from province to province is the extent to which tort or no-fault is emphasized. Typically, coverage against loss of or damage to the driver’s own vehicle is optional – one notable exception to this is in Saskatchewan, where SGI provides collision coverage (less than a $700 deductible, such as a collision damage waiver) as part of its basic auto  insurance policy. In Saskatchewan, residents have the option to have their auto insurance through a tort system but less than 0.5% of the population have taken this option.

All of Canada’s provinces have some form of no-fault insurance in which benefits are paid to all victims in an accident. But depending on the province, the ability for someone to sue for further damages can be different. The type and scope of auto insurance required will be vary for each province.

Alberta

Auto insurance in Alberta is privately run. All drivers are required to at least have a minimum level of auto insurance, which is determined by the government. Consumers can buy auto insurance in addition to the provincial requirements. Those laws state that your policy must cover several different scenarios, including coverage when you’re at fault. Your policy must provide at least this coverage:
- Up to $200,000 in legal liability coverage
- Up to $50,000 per person for medical bills
- Up to 80 percent of your pre-tax wages if you’re unable to work
- Up to $5,000 for funeral expenses in the event of your death

British Columbia

In British Columbia, auto insurance is provided by a government-run insurance company called Insurance Corporation of British Columbia (ICBC). It is mandatory to have auto insurance through ICBC, but drivers also can purchase additional optional auto insurance through a private insurance company. All drivers must purchase at least the “basic ICBC Auto-plan,” which is a policy that provides third-party liability coverage, accident benefits, under-insured/uninsured motorist coverage, and inverse liability coverage. The basic plan provides the following coverage:
- Up to $200,000 in third-party legal liability coverage
- Up to $150,000 per person for medical expenses, after health insurance benefits have been exhausted
- Up to 75 percent of your pre-tax wages if you’re unable to work
- Survivor’s benefits in the event of your death

Manitoba

In Manitoba, drivers must buy auto insurance through a state-run agency called Manitoba Public Insurance (MPI). The basic policy that all drivers must have is called “Basic Autopac.” Like those plans in other provinces, it’s strongly suggested that drivers obtain coverage that exceeds the province minimum. Basic Autopac provides coverage for personal injury, “all perils” collision and third-party liability. The maximum insured value of a vehicle under Basic Autopac is $50,000.

New Brunswick

In New Brunswick, drivers receive their auto insurance coverage through private companies. Like in other provinces, New Brunswick sets minimum standards that all drivers policies must meet. While it’s recommended to get more than minimum coverage, a policy in New Brunswick must provide at least:
- Up to $200,000 in third-party legal liability coverage
- Up to $50,000 per person for medical expenses, after health insurance benefits have been exhausted, and regardless of whom was at fault for the accident
- Up to $250 per week for up to 104 weeks if you’re unable to work
- Survivor’s benefits in the event of your death and $2,500 for funeral expenses

Newfoundland and Labrador

In Newfoundland and Labrador, private insurance is offered to drivers. Minimum insurance is required to operate a car on public roads. Your policy must provide to $200,000 in third-party legal liability coverage. You’re permitted under law to sue another driver for injuries and/or property damage if you believe that driver to be at fault.

Nova Scotia

In Nova Scotia, consumers are obliged to buy auto insurance through private companies. Your policy must meet at least these province requirements:
- Up to $500,000 in third-party legal liability coverage
- Up to $25,000 per person for medical expenses, after health insurance benefits have been exhausted
- Up to $1400 per week for up to 104 weeks if you’re unable to work
- Survivor’s benefits in the event of your death and $1,000 for funeral expenses

Ontario

All drivers in the province of Ontario must have at least minimum insurance. While is not mandated, insurance experts recommend using the province’s minimum requirements as a starting point for determining your coverage. The coverage must provide:
- Up to $200,000 in third-party legal liability coverage
- Up to $100,000 for medical expenses ($1 million if the injuries are “catastrophic”), after health insurance benefits have been exhausted
- Up to 80 percent of your after-tax wages if you’re unable to work
- Survivor’s benefits of $13,072 in the event of your death and $7,843 for funeral expenses

Prince Edward Island

Private auto insurance is offered in Prince Edward Island. All drivers must have auto insurance in the area, and it is strongly recommended to attain more insurance than the required minimum for complete protection. The required minimums are:
- Up to $200,000 in third-party legal liability coverage
- Up to $25,000 per person for medical expenses, only after health insurance benefits have been exhausted
- Up to $140 per week for up to 140 weeks if you’re unable to work
- Survivor’s benefits in the event of your death and $1,000 for funeral expenses

Québec

Residents of Québec can receive auto insurance through the government and through private insurance companies. The government’s insurance covers injuries to people, while private insurance covers property damage. Québec has a no-fault system in regards to bodily injury, which means that there are no litigation rights or claims for pain and suffering, or medical expenses, against the at-fault individual. All drivers in the province must have a minimum amount of liability insurance through a private insurance company: The liability insurance will cover a driver for property damage within the province, and property damage and personal injury outside of the province.

Saskatchewan

In Saskatchewan, auto insurance is provided by a government-run agency, Saskatchewan Government Insurance (SGI). All drivers must buy at least a minimum amount of collision and comprehensive insurance. It’s strongly recommended to retain more than the province minimum, however. Saskatchewan offers drivers the choice of no-fault coverage or tort coverage – in short, drivers have a choice of whether or not they have the right to sue the responsible party in an accident. However, 95 percent of drivers choose the no-fault coverage. With the no-fault coverage, drivers receive a benefits that will cover most expenses in the event of an injury, regardless of whom was at fault. If you choose tort coverage, you must make an official declaration with the province. In tort coverage, basic injury-related expenses are covered in the event of an accident. If you’re not responsible for the accident, you’re permitted to sue for additional damages related to pain and suffering.

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