Which component reflects the minimum insurance coverage required by law in Ontario?

The correct answer is third-party liability coverage because, in Ontario, this component is legally required for all drivers. This type of coverage protects you if you are found to be at fault in an accident that causes injury to another person or damage to their property. The law mandates that drivers maintain a minimum level of this coverage to ensure that victims of accidents can receive compensation for their losses, thus promoting financial responsibility among motorists.

Comprehensive coverage and collision coverage are types of insurance that provide additional protection but are not required by law. Comprehensive coverage protects against non-collision events such as theft or weather-related damage, while collision coverage applies specifically to damage resulting from a collision, regardless of fault. Uninsured motorist coverage is also optional and provides protection in the event of an accident with a driver who does not have insurance or is underinsured. While these coverages can be beneficial, they do not fulfill the minimum legal requirements for insurance in Ontario.