Vehicle insurance (also known as auto insurance, car insurance, or motor insurance) is insurance purchased for cars, trucks, and other vehicles. Its primary use is to provide protection against losses incurred as a result of traffic accidents and against liability that could be incurred in an accident.

The smart Canadian car owner knows that having an auto insurance is a wise move to protect their vehicle investment. By providing property, liability and even medical coverage for the owner, auto insurance in Canada has provided security and peace of mind for the nation's over 12,650,000 registered car owners.

Auto insurance in Canada is a way of sharing risks associated with car ownership. The auto insurance policy is a guarantee that any possible financial losses that is covered by the policy can be claimed by the plan holder. Typical coverage in a Canadian auto insurance policy include car accident, theft, vandalism and other acts that causes damage or liability to the car or injury to the driver, passenger or other people involved.

The typical auto insurance coverages in Canada include Accident Benefits coverage (which is compulsory except in Newfoundland and Labrador) that provides medical, rehabilitation, loss of income or death claims due to accident; Collision coverage which protects the car from accident damages; and Comprehensive coverage which extends protection against loss or damage as a result of theft, vandalism or accident like debris falling on your vehicle. These three auto insurance coverages apply some form of deductibles, or areas where coverage is not extended, like wear and tear, corrosion, mechanical problems or weather-related damages.

Auto insurance in Canada is also valid anywhere in the United States. While there is a minimum coverage compulsory requirement, the purchase of newer car models now require getting a comprehensive or collision protection coverage.