Do you need to have car insurance in Canada?
6 minute read Published on Jul 13, 2026 by BrokerLink Communications
Yes. If you own or drive a car anywhere in Canada, the law requires you to have auto insurance. You cannot register a vehicle, drive on public roads or renew your plates without proof of insurance coverage.
Auto insurance rules are set by each province and territory. While the basics are similar across the country, the details can change depending on where you live. Read on to learn what’s required, how it works by province and what happens if you drive without car insurance.
What car insurance is mandatory in Canada?
Car insurance is mandatory for all drivers in Canada and pays for costs that would otherwise fall on you after a crash. The exact coverage you’re required to carry depends on the province or territory you live in. Here's what you need to know:
Third-party liability coverage
All provinces in Canada require a minimum of third-party liability insurance. It pays for injuries or property damage you cause to other people. This can include:
Medical costs for injured pedestrians, passengers or other drivers
Damage to other vehicles or property
Legal defence costs if you are sued
Accident benefits coverage
Accident benefits coverage is required in most of Canada and helps pay for medical treatment and income loss after a crash, no matter who caused it. Depending on the province, this may cover:
Medical and rehabilitation costs
Attendant care
Income replacement or caregiver benefits
Death and funeral expenses
Direct compensation–property damage (DCPD)
DCPD pays for damage to your own vehicle and belongings when you are not at fault and another insured driver caused the car accident. Instead of dealing with the other driver’s car insurance company, you deal with your own insurer. Fault is assigned using your province’s fault rules.
Uninsured automobile coverage
Also known as uninsured motorist coverage, this protects you if you are injured or your vehicle is damaged by an uninsured driver, underinsured driver or a hit-and-run driver.
What are the minimum insurance requirements by province?
The Insurance Bureau of Canada (IBC) explains that what you’re required to carry depends on the province you live in. This table shows the mandatory coverage for each one. Keep in mind that limits can change, so it’s always a good idea to double-check with your provincial regulator or insurer. Take a look:
Province/Territory | Public or private | Mandatory coverages | Minimum liability |
|---|---|---|---|
Alberta | Private | Third-party liability, DCPD, accident benefits | $200,000 |
British Columbia | Public (ICBC) | Basic Autoplan (liability, underinsured motorist, inverse liability, basic vehicle damage, accident benefits) | $200,000 |
Manitoba | Public (MPI) | Basic Autopac (personal injury, all perils, third-party liability) | $500,000 |
New Brunswick | Private | Third-party liability, DCPD, accident benefits, uninsured automobile | $200,000 |
Newfoundland and Labrador | Private | Third-party liability, DCPD, uninsured automobile | $200,000 |
Nova Scotia | Private | Third-party liability, DCPD, uninsured automobile | $500,000 |
Ontario | Private | Third-party liability, accident benefits, uninsured automobile | $200,000 |
Prince Edward Island | Private | Third-party liability, DCPD, accident benefits, uninsured automobile | $200,000 |
Quebec | Mixed | Public bodily injury plan (SAAQ) + private civil liability | $50,000 (civil liability) |
Saskatchewan | Public (SGI) | Third-party liability, basic auto damage (registration included), accident benefits (unless tort chosen) | $200,000 |
Northwest Territories | Private | Third-party liability, accident benefits, uninsured automobile | $200,000 |
Nunavut | Private | Third-party liability, accident benefits, uninsured automobile | $200,000 |
Yukon | Private | Third-party liability, accident benefits | $200,000 |
What are popular optional coverages that many Canadians add?
The coverage you’re required to carry is there to meet the law. But it’s not really meant to protect your car in every situation. That’s why many drivers will often add a few extra coverages. Consider adding the following coverages to your auto insurance policy:
Higher liability limits
While the minimum liability amount is set by law, it may not go very far if someone is seriously injured. That’s why drivers often set at least $1 million or $2 million as their limit so they’re better protected if they cause a crash that leads to large medical bills, lost income claims or a lawsuit.
Collision coverage
Collision coverage is what pays for your car if you cause a crash, whether with a stationary object or another vehicle or even if fault is shared. Without it, repairs come out of your own pocket.
Comprehensive coverage
Comprehensive coverage covers repairing or replacing your car if it’s damaged by something that has nothing to do with a collision. This includes things like theft, vandalism, fire, water, hail or even a tree branch falling on your car. A few other popular options include:
Do you need insurance to register a vehicle?
Yes. You can’t register a vehicle or renew your plates in Canada unless you already have valid auto insurance in place. When you go to register, you’ll usually need to show proof that the car is insured. That might be:
A paper or digital insurance pink slip
An insurance certificate or binder
Confirmation sent directly from your insurer
If you’re unsure what’s accepted where you live, your automobile insurance provider or broker can tell you. If your plates are expired or the vehicle isn’t registered, that’s a separate issue with its own penalties, even if the car is insured.
Is it illegal to drive without insurance?
Yes. Driving without insurance is against the law everywhere in Canada. What happens if you’re pulled over depends on the province, but it usually means some combination of:
A large fine
Losing your licence for a period of time
Having your vehicle taken off the road/impounded
Here’s what this can look like in different provinces:
Province | Typical fine | Licence suspension | Vehicle impoundment |
|---|---|---|---|
Alberta | $2,500 to $10,000 for a first offence $5,000 to $20,000 for a second offence | Varies by case. | Yes |
British Columbia | Yes | Yes | |
Ontario | $5,000 to $25,000 for a first offence $10,000 to $50,000 for a second offence | Up to 1 year | Up to 3 months |
Québec | Yes, until proof of insurance is provided | Possible |
Without insurance, a serious crash can cost far more than most people could pay on their own, even putting them at risk of personal bankruptcy. You can be personally sued for medical expenses, lost income, property damage and legal fees.
The IBC explains that it can also make your car insurance premiums more expensive later on. A conviction for driving without insurance stays on your driving record for three years and insurers may treat you as a higher risk during that time, making coverage harder and more expensive to get.
What happens if someone hits you and you don’t have insurance?
Even if the crash isn’t your fault, you can still be fined. Your licence can still be suspended. And you may end up paying for things insurance would normally cover. In provinces with no-fault insurance, you might qualify for some basic benefits. But those benefits are limited and they don’t cover everything.
Can you drive a car you just bought without insurance?
No. Your own insurance has to be in place before you can drive the car. Many insurance companies will let you set up auto insurance coverage the same day and some may temporarily extend an existing car insurance policy under what’s called a “grace period.” But that depends on the insurer, your policy and whether the new car is replacing another one.
It helps to know what insurance will cost before you buy a vehicle, which is why it’s generally best to shop around for quotes before you head to the car dealership. And if you decide to switch insurers, make sure the new policy is in place before the old one ends so there’s no break in coverage.
Can you drive someone else’s car if you don’t have insurance?
Usually, yes. As long as the car itself is insured and you have a valid driver’s licence. In most of Canada, insurance follows the car, not the person driving it. So if the owner says it’s okay for you to take the car, their auto insurance policy is the one that applies.
There are a few limits, though. Generally, you can’t use the car regularly and you can’t treat it like your own. If you’re borrowing the same vehicle all the time or you live with the owner, their insurer may expect you to be listed on their policy as a secondary or occasional driver.
Contact BrokerLink today
If you want help with purchasing car insurance, comparing policies or understanding how the rules apply in your area, connect with a licensed BrokerLink broker today. With over 30 years of experience in helping drivers like you, we can walk you through your options and requirements based on where you live.
You can reach us by phone, email or in person at any one of our locations throughout Canada. We also encourage you to take advantage of our free online quote tool that can provide you with a competitive quote in minutes.