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Ontario Mandatory Coverage


Ontario Mandatory Coverage

​​​​To drive in Ontario, you must secure coverage through a private insurer that meets the minimum provincial regulations.  In the province, $200,000 in third-party liability coverage is mandatory.  ​


The chart below provides a summary of minimum coverages required by the Ontario government. Please refer to the list of sources for more details.

This information is for educational purposes only. We recommend you consult a qualified insurance professional​ for further assistance. 

As of January 1, 2017

​​Compulsory minimum third-party liability:

​$200,000 is available for any one accident; however, if a claim involving both bodily injury and property damage reaches this figure, payment for property damage will be capped at $10,000

Direct Compensation Property Damage (DCPD) Required:

​Yes

Medical payments:

Up to $3,500/person for minor injury; up to $65,000/person for combined medical and attendant care for non-minor and non-catastrophic injury for up to 5 years (longer for children; paid only as long as person remains medically eligible); up to $1 million for combined medical and attendant care for catastrophic injury

​Funeral expense benefits:

$6,000 (if optional indexation coverage is purchased, this amount may be higher)

​Disability income benefits:

Income Replacement Benefit: 70% of gross wages to maximum $400/week, minimum $185/week for 104 weeks (longer if victim is unable to pursue any suitable occupation); nothing is payable for the first seven days of disability.

Non-earner Benefit (disabled unemployed persons, students enrolled in education full time, or students who completed their education less than one year before the accident and are not employed): $185/week for 104 weeks; four-week wait; limit two years; Not available if the insured is eligible for, and elects to receive, the income replacement or caregiver benefit

Death benefits:

Death within 180 days of accident (or three years if continuously disabled prior to death); $25,000 to spouse, $10,000 to each surviving dependant, $10,000 to each parent/guardian (if optional indexation coverage is purchased, these amounts may be higher)

​Impairment benefits:

​N/A

Right to sue for pain and suffering?

Yes, if injury meets severity test (called “threshold”), and subject to deductible. Lawsuit allowed only if injured person dies or sustains permanent and serious disfigurement and/or impairment of important physical, mental or psychological function. The court assesses damages and deducts $37,385.17 ($18,692.59 for a Family Law Act claim)

​Right to sue for economic loss in excess of no-fault benefits?

Yes. Income replacement award above no-fault benefit is based on net income after deductions for income tax, Canada Pension and Employment Insurance. Injured person may sue for 70% of net income loss before trial, 100% of gross after trial; also for medical, rehabilitation and related costs when injury meets severity test for pain and suffering claims

​Administration:

Private insurers

Sources: 

All online sources were accessed on April 1, 2017.

On April 11, 2017 the Ontario government released a report on auto insurance, which recommends a major overhaul of the current system.

Fair Benefits Fairly Delivered: A Review of the Auto Insurance System in Ontario (by David Marshall)

 

Studies about the auto insurance system in Ontario: