Registered Insurance Brokers of Ontario (RIBO) Practice Exam

Under Ontario law, specifically within the framework of the Ontario Automobile Policy (OAP 1), the minimum limit of liability required for automobile insurance coverage is $200,000. This amount is designed to provide basic protection to drivers and reflects a legislated standard intended to ensure that liability claims arising from automobile accidents are adequately covered.

While higher limits can and often are purchased for enhanced protection, the baseline requirement is set at this level to ensure that individuals have a minimum level of coverage in place. This standard is critical for safeguarding against the potentially significant financial implications of liability claims resulting from vehicle accidents, thus promoting accountability on the road.

The basis for setting this minimum limit includes considerations for the average costs associated with personal injury claims and property damage, making $200,000 a reasonable threshold for basic liability coverage in the context of Ontario's insurance regulations.