The legal floor includes at least $200,000 of third-party liability, mandatory medical, rehabilitation and attendant care accident benefits, Uninsured Automobile Coverage, and DCPD unless you opt out. That floor is not automatically the right financial limit. You must choose liability, optional accident benefits and physical-damage coverage based on losses you can’t absorb yourself.
Read More: When Should I Get Full Coverage Car Insurance?
| Coverage | Legal or standard-policy position | Decision to make |
|---|---|---|
| Third-party liability | At least $200,000 is required by law. | Compare higher limits such as $1 million and $2 million based on the liability you could not pay yourself. |
| Accident benefits | For a policy issued, renewed or changed on or after July 1, 2026, medical, rehabilitation and attendant care remain mandatory; other accident benefits are optional. | Review income replacement, caregiver, housekeeping, non-earner, death and funeral benefits against work and family needs. |
| Uninsured Automobile | Mandatory under the standard policy. | Understand the bodily-injury limit and the narrower rules for vehicle damage. |
| DCPD | Included in the standard policy, but you may elect not to recover. | Review the OPCF 49 warning before considering the premium reduction. |
What Is the Ideal Liability Limit?
Ontario auto insurance laws require at least $200,000 in third-party liability coverage. While you can buy the legal limit, FSRA recommends considering $1 million or $2 million, depending on your comfort with risk.
If you cause an accident and are found at fault, any costs that exceed your policy’s liability limit become your responsibility. Consider your assets, income, regular travel outside Ontario and any minimum liability limit required for a personal umbrella policy.
Accident Benefits
| Question | Coverage to review |
|---|---|
| Would an injury stop your employment or self-employment income? | Income replacement and any available increase. |
| Do you provide unpaid care to a dependant? | Caregiver and housekeeping or home-maintenance options. |
| Would your family face immediate costs after a death? | Death and funeral benefits. |
| Who needs the optional protection? | Confirm how the named insured, spouse, dependants and listed drivers are treated. |
| What other plans respond first? | Compare workplace health, disability and private insurance with the auto-policy wording. |
Read More: 2026 Ontario Accident Benefits Reform Explained
Direct Compensation-Property Damage (DCPD): Can You Opt Out?
Ontario car insurance includes Direct Compensation-Property Damage coverage. When its conditions are met, DCPD may cover damage to your vehicle, its contents and loss of use based on your share of fault. You can opt out.
Without this coverage, you agree not to recover from the person who caused the accident or that person’s insurer.
Based on MyChoice data from 50,000 car insurance quotes collected since the beginning of 2026, DCPD accounted for approximately $624 of the average standardized Ontario quote in the sample. The amount can be higher or lower depending on your own premium.
To opt out of DCPD coverage, you’ll need to fill out and sign OPCF 49. If you sign OPCF 49:
- DCPD, Collision or Upset, and the collision portion of All Perils will not cover the listed vehicle.
- You will not be able to claim for damage to your car from the person who caused the accident or their insurer.
Read More: Comprehensive vs. Collision Coverage in Ontario
Other Auto Insurance Additions to Consider
| Need | Option to ask about | Check before buying |
|---|---|---|
| A replacement vehicle during a covered claim | OPCF 20 Loss of Use | Daily limit, total limit, covered causes and waiting rules. |
| Physical-damage protection on a rented or borrowed car | OPCF 27 | Vehicle types, value limit, territory, term and exclusions. |
| Protection against an underinsured at-fault driver | OPCF 44R | Eligible insured people, limit and coordination with other insurance. |
| Depreciation protection on an eligible new vehicle | OPCF 43 | Eligibility period, settlement formula, deductible and exclusions. |
| Accident forgiveness | Insurer-specific endorsement or feature | Which accident qualifies, driver eligibility and what happens after switching insurers. |
Once you’ve confirmed your mandatory insurance in Ontario, consider adding collision and comprehensive coverage.
Collision insurance covers accidents, flips or rollovers, while comprehensive insurance covers fire, vandalism, theft, falling objects and more. When considering physical-damage coverage, review your car’s value, the deductible, the cost of coverage and whether you can afford to replace your vehicle if it’s written off. Don’t base your decision solely on age, as older cars can be expensive to replace.
Read More: Learn About Other Coverages and Their Costs in Ontario