Ontario car insurance has two layers. The mandatory layer is third-party liability (legal minimum $200,000), statutory accident benefits and uninsured automobile coverage. The optional layer includes collision, comprehensive and endorsements you add to fit your needs. Knowing which is which helps you buy what you need and avoid paying for what you do not.
Key takeaways
- Three coverages are mandatory in every Ontario policy: liability, accident benefits and uninsured automobile.
- Damage to your own car is optional, through collision, comprehensive or all perils, unless a lender requires it.
- Endorsements such as OPCF 20, 27, 43 and 44R fill specific gaps.
- Since 1 July 2026, some accident benefits are optional, so check what your policy includes.
The mandatory coverages
Ontario law requires three coverages in every auto policy. Think of them as the foundation.
Third-party liability
Liability pays when you are legally responsible for injuring someone or damaging their property with your car. This covers other people, not you or your own vehicle. It also pays for legal defence costs. The legal minimum is $200,000, but most people choose $1 million or $2 million because serious claims can be very large. Our guide on how much liability coverage you need walks through the choice.
Statutory accident benefits
Accident benefits pay for certain costs if you are hurt in a crash, no matter who is at fault. They are called statutory because the law sets the basic rules. Medical, rehabilitation and attendant care benefits remain mandatory.
On 1 July 2026 the other accident benefits became optional for the insured to buy. These include income replacement, caregiver, housekeeping and home maintenance, and death and funeral benefits, among others. Optional benefits apply to the named insured, their spouse, dependants and listed drivers, while standard benefits still apply to passengers. Insurers must still offer them. Read the details in our article on the July 2026 accident benefits changes, or on the FSRA page listed in the sources.
Uninsured automobile coverage
This protects you if you are injured or your car is damaged by a driver who has no insurance, or by a hit-and-run driver who cannot be identified. It is part of every policy.
Coverage for your own car
Everything in this section is optional by law, although a lender or leasing company may require some of it.
Collision
Collision pays to repair or replace your car after it hits something or is hit by something, such as another vehicle, a pole or a guardrail. You choose a deductible, which is the amount you pay before the insurer pays the rest.
Comprehensive
Comprehensive pays for non-collision damage. Typical examples are theft, vandalism, fire, hail and a tree branch falling on the car. It also has its own deductible.
All perils
All perils combines collision and comprehensive into one coverage with one deductible. It can be simpler to manage and to understand. Ask your broker whether it changes the price compared with buying them separately.
Direct Compensation Property Damage
Direct Compensation Property Damage, or DCPD, repairs your car under your own policy when someone else is at fault. Since 1 January 2024, Ontario drivers can opt out of it through an endorsement. Opting out has real trade-offs, so check your policy and talk to your broker before you decide.
Endorsements: add-ons for specific gaps
An endorsement, sometimes called an OPCF (Ontario Policy Change Form), changes a standard policy. You pay a bit more and get a specific extra. These are the ones people ask about most.
| Endorsement | What it does |
|---|---|
| OPCF 20 | Loss of use: pays for a rental while your car is being repaired |
| OPCF 27 | Legal liability for damage to non-owned vehicles you borrow or rent |
| OPCF 43 | Waiver of depreciation on a newer car |
| OPCF 44R | Family Protection: tops up when an at-fault driver's liability insurance is too low |
| OPCF 5 | Covers rented or leased vehicles |
A few notes on how to read the table:
- OPCF 20 matters if you could not manage without a car for a week or two. Without it, a rental during repairs may not be paid for.
- OPCF 27 can matter if you often drive cars that are not yours.
- OPCF 43 is mostly for newer cars that lose value quickly. It changes how a total loss is calculated, so ask for an example.
- OPCF 44R typically tops up to $1 million of your own limit when the person who hurt you carries too little liability insurance. Many people find it valuable, because you cannot control what other drivers carry.
Some insurers also offer accident forgiveness as an optional feature. Rules differ, so ask exactly which events it covers and how it is earned.
How the pieces fit together
Picture a simple example. You drive a 2021 compact SUV in Toronto. Another driver backs into it in a parking lot and drives away. Here is how coverages might respond, depending on your policy:
- If you have collision or all perils, you can claim for the repair and pay your deductible.
- If you have OPCF 20, a rental may be covered while the car is in the shop.
- If you were hurt, accident benefits may pay for medical and rehabilitation costs.
Every policy and claim is different, so this is only an illustration of the layers, not a promise of what will be paid.
Notice what each layer does in that story. The collision coverage deals with the damage to the car, the endorsement deals with the inconvenience of being without it, and accident benefits deal with any injury. None of them replaces the others, which is why it helps to look at the whole policy together rather than judging one coverage at a time.
Choosing coverage that fits you
Start with the question: what would hurt most if it happened? For many people the answers are a serious injury claim against them, losing the use of the car, and paying for a newer car that is written off. Then match coverages to those worries.
- A paid-off older car may not justify high collision cover, though liability should stay strong.
- A financed or leased car usually needs collision and comprehensive, and the lender may set a maximum deductible.
- A household that depends on one income may think carefully about the optional income replacement benefit.
- A regular borrower of other people's cars may value OPCF 27.
Price also matters. See how Ontario car insurance rates are calculated to understand what moves your premium.
Common mistakes to avoid
Some errors come up again and again, and most are easy to prevent.
- Choosing only the minimum liability. The legal minimum of $200,000 can be used up quickly in a serious claim. Many people choose $1 million or $2 million.
- Assuming a deductible is a small detail. A low deductible raises the premium and a high one raises what you pay at claim time. Pick a number you could pay tomorrow without stress.
- Forgetting about a rental. If you rely on your car every day, a repair can last longer than expected. Ask whether OPCF 20 makes sense for you.
- Not reading changes at renewal. Insurers send renewal documents that may show new limits, deductibles or removed endorsements. Read them before the old policy ends, and call your broker if anything looks different.
What to ask your broker
- Which of my accident benefits are mandatory, and which optional ones are included?
- What liability limit do you recommend for my situation, and why?
- Do I have collision, comprehensive or all perils, and what are my deductibles?
- Have I opted out of DCPD, and what does that mean for a claim?
- Which endorsements do I have, and are there any I should add or drop?
Ontario brokers are licensed by RIBO, and consumer information is available from FSRA and the Insurance Bureau of Canada.
Before you act
Take out your current policy and read the declarations page, which lists your coverages, limits and deductibles. Compare it with the sections above and note questions. A useful habit is to highlight three things: your liability limit, your deductibles and every endorsement listed by its form number. If you cannot explain in one sentence why each of them is there, that is a good question to take to your broker. Keep a copy of the page somewhere you can find it quickly after an accident, because you will need your policy number and details when you report a claim. When you are ready, you can request an auto insurance quote and compare the coverage, not just the price.
Reviewed October 2026. This article is general information and not insurance or legal advice. Rules change, so confirm the details with a broker and the official sources below.
