The Difference Between Mandatory and Optional Car Insurance

August 15, 2022

In Canada, the main difference between mandatory and optional car insurance is that mandatory car insurance protects you and others from injury caused by a car accident and it covers damage to a third party’s property.

Optional car insurance covers damage to your car.

Having higher limits than the mandatory minimum on your third-party liability coverage is another form of optional car insurance.

Ask your Western Coast Insurance expert about the difference between mandatory and optional car insurance and what is right for you. We have the expertise to help you find the right mandatory and optional car insurance for you.

Mandatory car insurance

Mandatory car insurance includes third-party liability coverage, uninsured car insurance, and accident benefits.

Third-party liability coverage

Third-party insurance is mandatory on all car insurance policies across Canada. Different provinces have different minimum requirements for third-party liability coverage. If you are in a car accident and another person (third party) is injured or their property is damaged, you may be liable for their health care and property repair costs.

These expenses would be covered by your third-party liability coverage. It is advisable to have more than the minimum mandatory coverage for your province in case the damages caused by an accident exceed the coverage amount required by your province.

Uninsured auto insurance

Uninsured auto insurance covers you if you are in an accident with an uninsured driver or are in a hit-and-run with a driver who leaves the scene.

Accident benefits

Accident benefits are a type of mandatory car insurance that covers you if you are injured in a car accident.

Your Western Coast insurance expert will answer any questions about mandatory car insurance and how much coverage is right for you.

Optional car insurance

Optional car insurance covers damage to your car and the two main types are collision coverage and comprehensive coverage.

Collision coverage

If you are in an accident, collision coverage will help pay for damage to your car. It covers collisions with other cars and objects like guardrails, trees, and the ground (for example, a roll-over).