Before committing to car insurance, understanding your options is crucial. There are three primary types to consider: Third-party liability insurance is a must, covering damage to others' vehicles, injuries, or fatalities. Minimum coverage varies by province, mostly $200,000, but $50,000 in 1. Quebec. It's wise to get more coverage, as accidents can be costly. Consider purchasing $1-5 million for added security. 2. Collision insurance is not compulsory but covers repair or substitution expenses for your vehicle after an accident. 3. Comprehensive insurance is optional and covers damages from fire, theft, natural disasters, and more, making it a wise choice for newer cars.