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How much auto insurance is enough?

Auto insurance is a regulated product. You must have a minimum amount of coverage that is mandated by your provincial government. This minimum coverage may change over time, so for the most up to date minimum coverage, check out your province's website. These links are available in our Additional Resources section.

If you need extra coverage on top of the minimum amounts required, then you are responsible for the shortfall. For example, if you are in an accident in which you damage someone's property and they successfully claim $500,000 in damages, but your policy only covers you for a maximum of $200,000 in damages, then you are responsible for the shortfall. For this reason, many drivers select coverage that is higher than the mandated minimum.
You are not required by law to purchase insurance to cover damages to your automobile. But, if you have a newer automobile, you may want to protect your investment with collision and upset and/or comprehensive coverage. If you're leasing or financing your automobile, the leasing company or bank will require that you insure your automobile for collision and comprehensive coverage. They will not release the funds to purchase the automobile until you commit to that coverage.

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