Minimum insurance requirements
Every jurisdiction mandates at least liability coverage, but the minimums are often far below what a real accident costs.
Meeting the legal minimum keeps you road-legal; it does not keep you financially safe. Use the minimum as a floor, not a target.
Canada (mandatory third-party liability minimums)
| Province | Minimum liability | Notes |
|---|---|---|
| Ontario | $200,000 | Most carry $1M-$2M; accident benefits mandatory |
| Quebec | $50,000 (property) | Bodily injury covered by public SAAQ plan |
| British Columbia | $200,000 | Basic coverage through ICBC |
| Alberta | $200,000 | Accident benefits mandatory |
| Most other provinces | $200,000 | Higher limits widely recommended |
United States (typical minimums)
| Format | Example state minimum | Meaning |
|---|---|---|
| 25/50/25 | Many states | $25k injury per person / $50k per accident / $25k property |
| 30/60/25 | e.g. New York, Texas | Higher injury limits |
| 15/30/5 | e.g. California | Among the lowest; often inadequate |
Frequently asked questions
Is car insurance mandatory everywhere?
Yes, in every Canadian province and territory and in nearly every US state. New Hampshire is the main exception, but drivers there must still prove they can pay for damage they cause.
What is the minimum liability in Ontario?
Ontario requires at least $200,000 in third-party liability, though most drivers carry $1,000,000 or $2,000,000 because the minimum is low relative to real claim costs.
Are US minimums enough?
Often not. Many state minimums (for example 25/50/25) are well below the cost of a serious accident, leaving you personally liable for the excess. Carrying higher limits is strongly advised.
What happens if I drive uninsured?
Penalties include heavy fines, licence and registration suspension, vehicle impoundment, and personal liability for all damages. Some places impose multi-thousand-dollar fines for a first offence.
Do I need more than the minimum?
Usually yes. Minimums protect the public, not your finances. Higher liability and uninsured-motorist limits are inexpensive insurance against catastrophic, life-changing costs.