The article explains the mandatory liability insurance requirements for car owners in Canada, focusing on Ontario's minimum $200,000 coverage but emphasizing that experts recommend higher limits like $2 million.

It outlines the three types of car insurance (liability, collision, comprehensive), clarifying that liability covers injuries or property damage caused in accidents where the driver is at fault.The piece highlights risks of opting for minimum coverage, such as personal financial liability for damages exceeding the policy limit.

It also discusses how no-fault insurance systems in some provinces affect liability claims and the potential costs of underinsurance, using examples like hitting a vehicle with no occupants versus causing injuries.Insurance professionals warn that rising costs make higher coverage more critical, while also noting savings from lower limits.The article concludes with advice on understanding risks before choosing coverage levels.