Which option describes the coverage territory for auto insurance in Canada?

The correct answer identifies the coverage territory for auto insurance in Canada as encompassing North America, which includes all states and provinces within the United States and Canada. This is crucial for drivers who travel across borders, as many auto insurance policies in Canada provide coverage that extends into the U.S. and vice versa.

This territorial coverage is particularly important for policyholders who may drive outside their home province, allowing them to have peace of mind knowing they are protected while traveling throughout North America. Moreover, auto insurance providers typically design their policies with the expectation that customers may need coverage even when driving across provincial or national lines, thus reinforcing the need for comprehensive coverage in this broader geographic area.

In contrast, options suggesting coverage is limited to only the province of registration, only within Canada, or worldwide do not accurately reflect the standard practices of auto insurance coverage within Canada. Each of these limitations fails to recognize the extensive travel patterns of Canadian drivers and the collaborative nature of insurance agreements between Canada and the U.S.