In Ontario, auto insurance is mandatory. But the government doesn’t require you to buy ‘Accident Benefit upgrades ‘ or the so-called ‘full coverage’. You are only required to buy the minimum liability coverage*. This is so you can pay for some of the damage your car does to other people or other people’s property..
* In this other article, I’ll point out OTHER ‘insurance coverages‘ that are also mandatory in Ontario.
How much are you required to buy? In Ontario, the minimum liability amount is $200,000. That’s not much. In fact, it’s next to nothing.
* Tip. The minimum amount of insurance required in Ontario is NOT much. Seriously consider getting more coverage ($2,000,000.00 or more) in order to protect your financial health.
* Note. Notice that mandatory auto insurance laws in Ontario do not require you to buy certain coverages for your own car. It’s up to you to decide if you want to buy protection against such risks as vandalism, fire, theft and damage to your car in case of an “at-fault” collision.
If you buy just the minimum coverage required by law, you are leaving your assets at considerable risk. Your car, obviously. And your home, if you are at fault in an accident that causes serious injuries to the other parties.
How far do you think the minimum $200,000 will go if you hurt somebody and they can’t work for 5 years?
Not far enough!