Your provincial or territorial government dictates the minimum amount of insurance you need to legally drive your vehicle. However, there are also optional coverage add-ons, or enhanced liability limits you can choose to purchase depending on your needs. The amount of car insurance coverage you have is an important choice, as it directly affects the level of protection afforded by your insurance policy and how much your car insurance will cost. Generally, the more coverage you have, the more it'll cost to insure your vehicle.
Tip: If you want to lower your car insurance premium, an easy way to do it is to increase your deductible.
A deductible is the amount of money you have to pay towards a covered repair, and your insurance covers the rest. For example, if you're in an at-fault accident that causes $5,000 worth of damage to your car, and your Collision deductible is $1,000 – you'll pay $1,000 towards the repair, and your insurer covers the remaining $4,000.