If you’re looking to insure your vehicle, the minimum coverage you’ll be required to get in all provinces is third-party liability. This coverage is primarily used to pay for the legal bills, medical bills and vehicle damages of other drivers if you cause an accident.
Learn more about what’s included with third-party car insurance and find out which companies offer the lowest rates for this type of coverage.
Third-party liability coverage is a mandatory level of insurance that all drivers must have when operating a vehicle in Canada. This coverage pays for a number of different costs that you might incur if you get into an accident that’s deemed to be your fault. These include the following:
Most provinces will require you to have at least $200,000 worth of third-party liability coverage to get your vehicle on the road. The exception to this rule is Quebec, which requires a minimum of $50,000 in coverage. You’ll also get a capped amount for property damage included with this amount (which equals $10,000 in most cases). You can choose to increase your third-party liability to between $1 and $5 million, depending on what level of coverage you want. Just be aware that any increase in your coverage will result in an increase in your premiums.
If you want the cheapest car insurance available, you’ll usually only want to insure your vehicle with third-party liability. That said, you may want to add on collision and comprehensive if you have a new or expensive vehicle, just to be safe.
There are different requirements for mandatory insurance based on which province you’re located in. Mandatory insurance must be provided by provincial insurance agencies in BC, Saskatchewan, Manitoba and Quebec. Other provinces allow private insurance companies to sell compulsory insurance.
Province | Insurance type | Mandatory coverage | Average premiums |
|---|---|---|---|
British Columbia | Public (ICBC) |
| $119 |
Alberta | Private |
| $114 |
Saskatchewan | Public (SGI) |
| $87 |
Manitoba | Public (MPI) |
| $86 |
Ontario | Private |
| $160 |
Quebec | Public (SAAQ) |
| $76 |
Newfoundland | Private |
| $62 |
New Brunswick | Private |
| $94 |
Prince Edward Island | Private |
| $54 |
Nova Scotia | Private |
| $94 |
The price that you’ll pay for your insurance will depend on a number of different personal factors. While it’s impossible to give you an exact price for your unique personal situation, we can make a general comparison using a run-of-the-mill vehicle and driver profile.
We chose to compare quotes for third-party car insurance on a 2013 Honda Civic clocking 15,000 km per year. We listed the driver as a 30-year-old female with 10 years of driving experience and a perfect driving record.
As you can see, the prices outlined in the example below vary based on which provider you go with and which province you’re getting insurance in. We chose ten of the cheapest options to give you an indication of how your prices might fluctuate based on these factors.
*All prices in this table are listed as price per month of coverage | |||
Insurance company | Ontario | Alberta | Nova Scotia |
|---|---|---|---|
Pembridge | Not available | $57.75 | $86.33 |
Not available | $73.33 | $97.92 | |
$77.00 | Not available | $89.42 | |
SGI CANADA | $77.83 | Not available | Not available |
Echelon | $83.67 | Not available | Not available |
Dominion | $87.00 | $59.58 | $80.17 |
$97.17 | Not available | Not available | |
Economical | $126.83 | $102.50 | $79.83 |
RSA | $127.50 | $70.67 | $101.92 |
*Quotes as of 28 July 2020 (subject to change based on personal details) | |||
You may be able to bring your rates down even further if you apply for the following discounts on your car insurance (where eligible).
To apply for car insurance anywhere in Canada, you’ll usually need to meet the following criteria:
If you want to apply for third-party car insurance, you just need to follow these simple steps.
Third-party car insurance is designed to protect you from legal action in the event that you cause an accident. In particular, it will help cover any costs you’re required to pay for vehicle damages or injuries sustained by other drivers or their passengers. Learn more about what third-party insurance you might need to purchase in your province and compare providers to find the best fit for you.
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