What is a mandatory coverage that must be included in an automobile insurance policy?

Mandatory coverage in an automobile insurance policy in Ontario includes third-party liability coverage, which is part of comprehensive coverage. This type of coverage protects against damage and injury caused to others when you are at fault in an accident. It provides a layer of financial security and legal protection in the event that you cause injury or damage to another person or their property.

While comprehensive coverage, as mentioned in the answer, typically includes protection for non-collision-related incidents such as theft, vandalism, and natural disasters, it is important to note that the term "comprehensive damage" might often be confused with mandatory liability coverage, which is required by law for all drivers in Ontario. Therefore, recognizing the necessity of third-party liability coverage as vital protection helps underscore why this aspect of auto insurance is mandatory for all drivers.

In contrast, the other options presented do not represent mandatory components of automobile insurance. Coverage for luxury vehicles, repairs of stereo systems, and injuries to pets are not legally required and can often be considered optional insurance coverages depending on the individual’s needs and preferences.