How many automobiles must be insured by an Ontario automobile policy for direct compensation to apply?

The correct answer is that at least two automobiles must be insured by an Ontario automobile policy for direct compensation to apply. This provision is integral to the system of insurance in Ontario, where the principle of direct compensation allows an insured driver to receive compensation from their own insurer for damages sustained in an accident, rather than pursuing the other party's insurance.

In Ontario, direct compensation is contingent upon both parties having valid automobile insurance policies. When at least two automobiles are insured through policies that cover direct compensation, it ensures that both drivers have the financial protection required to settle claims efficiently. This allows insurers to manage claims within the broader framework of Ontario's no-fault insurance system, promoting quicker resolutions and reducing the burden on the courts.

Therefore, having two or more insured automobiles involved is essential for applying this mechanism of direct compensation, reinforcing the interdependence of insured parties under the provincial insurance regulations.