If you live in Ontario, Canada than you need to obtain auto insurance from Ontario and not another province. Different Canadian provinces have different car insurance requirements so you need to get insurance for the area of Canada in which you live and not from a different province due to cheaper rates or whatever reason there is you may be looking elsewhere for insurance.

The Financial Services Commission of Ontario (FSCO) states insurance can only be sold by a licensed broker, agent or insurance company in Ontario. You then are required to buy insurance from these entities to be properly covered in Ontario.

For example insurance requirements of Quebec and Ontario are not the same. In Ontario as you should be aware that if you own a vehicle you are required to, at the very least, purchase the following automobile insurance coverages:

Third Party Liability Coverage – This type of coverage protects you if someone else is killed or injured, or their property is damaged. It will pay for claims as a result of lawsuits against you up to the limit of your coverage, and will pay the costs of settling the claims. By law you must carry a minimum of $200,000 of Third-Party Liability Coverage.

Statutory Accidents Benefits Coverage – This provides you with benefits if you are injured in an automobile accident, regardless of who caused the accident including supplementary medical, rehabilitation, attendant care, caregiver and income replacement benefits.

Direct Compensation – Property Damage (DC-PD) Coverage – This section of an Ontario auto insurance policy covers damage to your vehicle or its contents, and for loss of use of your vehicle or its contents, to the extent that another person was at fault for the accident. It is called direct compensation because even though someone else causes the damage, you collect directly from your own insurer, instead of the person who caused the damage.

Uninsured Automobile Coverage – This required coverage is for you and your family if you are injured or killed by a hit-and-run driver or by an uninsured motorist. It also covers damage to your vehicle caused by an identified uninsured driver.

In addition to the mandatory minimum coverages that are required by law in Ontario, you may purchase higher Liability limits under your Third-party Liability coverage, as well as increased Accident Benefits coverages. You can also get optional coverages of Collision and Comprehensive.

In Quebec they have an auto insurance plan which entitles everyone residing in Québec to compensation for injuries sustained in any road accident involving an automobile, whether the injured party is the driver, a passenger, a cyclist or a pedestrian. This coverage applies all over the world, and does not require identifying who was at fault.

This public auto-insurance plan is funded by contributions included in the cost of drivers' licenses and car registrations. The plan is managed by the SAAQ (Québec motor vehicle bureau).

Under the Automobile Insurance Act, everyone who wants to drive a car in Quebec must by law buy a minimum amount of third-party Liability insurance, $50,000, with a private insurer and has the option to buy more to suit their needs. Liability covers you for property damage inside Quebec and personal injury and property damage outside Quebec.

So as you can see Quebec and Ontario have very different auto insurance requirements and thus to fulfill the requirements of Ontario you must buy your insurance for your car from there and not Quebec or any other province while your car is registered and being driven in Ontario.

For information on all of Canada and the various types of auto insurance required by each province you can go to the Insurance Bureau of Canada (IBC) site and read our article on the Basics of Canadian Car Insurance.