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In Ontario, car insurance became mandatory in 1990 when the Compulsory Automobile Insurance Act was introduced. Should people choose to drive without insurance, a maximum fine for a first conviction is set at $25,000 and a maximum fine of $50,000 is set for a subsequent conviction.
Mandatory versus optional auto insurance coverage
In Canada, provincial and territorial bodies govern auto insurance rates and regulations. However, certain coverages are required countrywide. For example:
- Third-party liability insurance — This covers losses, such as injury or death, that your vehicle causes to other people, as well as damage to their property. It does not cover the cost of repairs to your own vehicle, however.