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Types of car insurance

Get personalized car insurance quotes based on the different types of car insurance coverage from Canada's top providers

Types of Canadian car insurance

Car insurance is mandatory across Canada. There are different types of car insurance regulations in Ontario than there are in British Columbia, but the essential types remain the same. Wherever you live, it's worth it to know the difference because it can help you make the right decisions and save you money. 


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What are the mandatory types of car insurance?

Below are the mandatory and essentials that make up the basis of any car insurance policy in Canada.

Third-party liability insurance

Accident benefits

Uninsured motorist

There is one more type of car insurance that is mandatory in Ontario, Quebec, New Brunswick, Nova Scotia, Newfoundland, PEI, and Alberta (as of January 2022): Direct Compensation Property Damage, or DCPD. 

In a no-fault insurance system, your insurer will pay for the repairs to your vehicle if you're found to be not at fault in a collision. However, if you are at fault, you'll need to buy optional insurance if you want your insurance company to repair your car. 

Optional types of car insurance in Canada



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Public vs. private car insurance

Car insurance in BC, Saskatchewan, and Manitoba is purchased through a provincial crown corporation. In other words, it's public insurance. Every driver pays their insurance premiums to their provincial corporation. 

Car insurance in Ontario, Alberta, the Territories, and Atlantic Canada is private. Each driver shops for car insurance quotes from a multitude of private insurers to find the best price. 

Car insurance in Quebec is a hybrid where you buy your liability insurance through the province, but everything else is done through private insurers. 

Currently, the public car insurance type is more expensive than private, but changes and rate fluctuations are always possible. 

Different types of vehicle insurance

Generally, all car insurance is the same, but different vehicle types will affect your rates. You can learn about each type of car insurance by vehicle on each of these pages. 

Author Bio

Matt Hands, Business Director of Insurance

Matt started his professional career at CARPROOF where he honed his marketing and analytical skills for over 3 years. Matt then took his wealth of experience to’s Toronto offices, working with insurance providers, agents, and brokers to grow and expand the Insurance business unit. He is a thought leader in the community and a valuable insurance resource to respected publications like the Globe & Mail, Toronto Star, Huffington Post, Yahoo News, and 680 news radio in Toronto.

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