What's the difference between mandatory and optional motorcycle insurance in Ontario?

Before riding a motorcycle in Ontario, one essential step is securing proper insurance. Without it, you cannot legally register or operate your motorcycle, and you risk serious financial consequences if an accident occurs.

Motorcycle insurance in Ontario is divided into mandatory coverage, which the law requires, and optional coverage, which offers additional protection. Understanding both categories ensures compliance with provincial regulations and provides peace of mind every time you ride.

Mandatory Motorcycle Insurance in Ontario

By law, every motorcyclist in Ontario must carry specific insurance coverages. These form the foundation of your policy and provide a basic level of protection for you, your passengers, and others on the road.

1. Third-party Liability Coverage

   This protects you if you are responsible for an accident that causes injury, death, or property damage to another person.

   What it covers:
   • Medical costs and rehabilitation expenses for the injured party
   • Lost income claims
   • Repair costs for damaged property (vehicles, fences, buildings, etc.)
   • Legal defence costs if you are sued

   The legal minimum for liability coverage is $200,000, but most experts recommend at least $1 million. Given the high cost of serious accidents, many riders opt for $2 million in coverage for added security.

2. Statutory Accident Benefits (SABS)

   Accident Benefits coverage applies regardless of who caused the accident. It provides financial support for you, your passengers, or even pedestrians injured in a collision.

   What it covers:
   • Medical and rehabilitation expenses: Treatment, recovery programs, and attendant care services
   • Income replacement: A percentage of your income if you cannot work due to injuries
   • Caregiver and non-earner benefits: Support if you can no longer perform caregiving duties or regular activities
   • Death and funeral benefits: Financial assistance for your family in the event of a fatal accident

   These benefits come with standard limits, but riders can purchase optional upgrades for more extensive coverage. Because motorcycle accidents often result in serious injuries, increasing these limits is a practical choice.

3. Uninsured Automobile Coverage

   This coverage protects you and your family if you are involved in a collision with a driver who is uninsured, underinsured, or unidentified (such as in a hit-and-run).

4. Direct Compensation – Property Damage (DCPD)

   DCPD is a core component of "no-fault" auto insurance in Ontario. It covers damage to your motorcycle and its contents when another insured driver is at fault for a collision. Under this coverage, you file your claim directly with your own insurance company, which streamlines the repair and compensation process.

   • Important Change: Since January 1, 2024, DCPD is no longer a mandatory coverage for motor vehicles, including motorcycles, in Ontario. Riders now have the option to opt out of this coverage by signing the OPCF-49 endorsement (Agreement Not to Recover for Loss or Damage from an Automobile Collision).
   • What Opting Out Means: By choosing to opt out, you are agreeing to waive your right to receive compensation from your insurer for a not-at-fault collision. This means you will have to pay for the repairs, towing, and any other related costs yourself. Furthermore, you surrender the right to sue the at-fault driver or their insurance company for property damage compensation. This can be a lengthy, uncertain, and costly process.
   • Strong Recommendation: Most insurance experts and brokers strongly advise against opting out of DCPD. While it may offer a small reduction in your premium, the financial risk of having to pay for all repairs out-of-pocket, even for a collision that was not your fault, far outweighs the savings. This is especially true for motorcycles that are leased, financed, or have a high value, as these agreements often mandate such coverage.

5. Optional Motorcycle Insurance in Ontario

   While mandatory coverage allows you to ride legally, optional insurance provides broader financial protection. Given the risks associated with motorcycles, most riders benefit from adding at least some of these coverages.

   • Collision or Upset Coverage

   This pays for repairs or replacement of your motorcycle if it is damaged in a collision—whether with another vehicle, a stationary object, or if it tips over.

   Why it matters: If you are at fault in an accident or involved in a single-vehicle collision, without this coverage you must pay for all repairs out of pocket. Since motorcycle repair and replacement costs can be high, collision coverage offers important financial security.

   • Comprehensive Coverage

   This protects against non-collision risks.

   What it covers:
   • Theft and attempted theft
   • Vandalism
   • Fire
   • Natural disasters (hail, floods, windstorms)
   • Falling objects (e.g., tree branches)
   • Damage from striking an animal

   Given that motorcycles are frequent targets for theft, comprehensive coverage is highly recommended.

   • All Perils Coverage

   This is the most complete form of physical damage protection, combining collision and comprehensive while also covering risks such as theft by a household member or employee. Riders with valuable or custom motorcycles often select this option for maximum protection.

   • Ontario Policy Change Forms (OPCFs)

   Endorsements allow you to customize your insurance policy:

   • OPCF 43: Removes depreciation deduction for new motorcycles, ensuring you receive the full value if your bike is written off.
   • OPCF 20: Provides a rental or replacement vehicle while your motorcycle is being repaired.
   • OPCF 27: Extends liability coverage to non-owned vehicles (useful if you borrow or rent another vehicle).
   • Increased Accident Benefits: Expands medical, rehabilitation, and income replacement limits.
   • Coverage for custom parts and equipment: Protects aftermarket upgrades, paintwork, or accessories not fully covered under a standard policy.

6. Why Optional Coverage Matters

   Mandatory coverage ensures legal compliance, but it does not fully protect your motorcycle or finances. Consider the following:

   • Repairs and replacement costs: Even a minor accident can result in thousands of dollars in repair bills.
   • Theft risk: Motorcycles are more vulnerable to theft than cars, making comprehensive or all perils coverage especially valuable.
   • Severe injuries: Upgrading accident benefits ensures adequate financial support for recovery, income loss, or caregiving needs.
   • Custom bikes: Riders who invest in modifications should secure coverage that reflects their motorcycle’s true value.

Looking for information on trusted motorcycle insurance brokers in Ontario?

We can help you understand which types of motorcycle insurance are required by law and which are optional, depending on your lifestyle and needs. At Begin Insurance, we specialize in providing tailored auto coverage for vehicle owners and renters across Ontario.

Our motorcycle insurance brokers compare leading providers in Canada to find options that balance affordability, flexibility, and reliable protection. Whether you need standard auto insurance or more specialized coverage, we ensure you receive a policy that fits your circumstances.

We offer both mandatory and optional insurance solutions for motorcycles, high-risk vehicles, vintage and luxury cars, and commercial vehicles.

Get a free quote today and discover coverage designed to protect your vehicle with confidence.

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