• Insurance is required to register a vehicle in Canada.accident image by ann triling from Fotolia.com
  
  Owning an automobile is luxury many Canadians enjoy. In fact, the "Canadian Vehicle Survey 2005," undertaken by the Canadian government estimated there are just under 18 million vehicles in the country, one for every two people. Automobile insurance requirements are regulated at the provincial level, with a number of variances between provinces.
  
  

Minimum Requirments

• Every vehicle driven in Canada must maintain valid third-party liability coverage. Third-party liability coverage provides restitution to others when the driver of a vehicle is involved in an accident resulting in property damage or bodily injury to an individual other than the driver. In all provinces and territories except Quebec, the owner of the vehicle must maintain at least CAD$200,000 in liability coverage. In Quebec, at least CAD$50,000 in liability coverage must be maintained. In all provinces, proof of insurance must be presented when requested by a police officer.
  
  

No Fault Insurance

• In several Canadian Provinces, vehicle owners can be protected under a no-fault insurance scheme. In Ontario and Quebec, no-fault insurance is mandatory, while Saskatchewan residents have the option of purchasing no-fault insurance. No-fault insurance responds immediately following a claim without the need to determine who was responsible for the accident. In most cases, this avoids lengthy and expensive law suits as each party involved in the accident attempts to avoid liability. No-fault claims are paid to the victims by their own insurer, simplifying the claims process. In return for this streamlined process, no-fault territories limit the amount of a claim to carefully prescribed maximum payouts. No-fault proponents cheer the simplicity and fairness of the system while critics point out the prescribed award limits may not be enough for some accident victims.
  
  

Personal Injury

• In all provinces, except Quebec, vehicle owners are required to purchase personal injury coverage. Personal injury coverage applies when an accident caused bodily injury to the driver and passengers. Personal injury claims pay for medical treatments, physiotherapy, counseling and rehabilitation after an accident, as well as death and funeral benefits. In Quebec, drivers are covered by a provincial fund for bodily injury and death claims included in the annual cost of a driver's license. In all provinces, a minimum amount of personal injury coverage is required and drivers are strongly encouraged to purchase additional coverage based on their individual needs.