Third-party liability car insurance in Canada aims to safeguard you if you happen to be involved in an accident that you have caused and are liable to pay for the third-party injuries, property damages, and in extreme circumstances, death. This is the most basic car insurance you’re able to cover yourself with and will not compensate for any damages done to yourself or your personal car.
Here’s how third-party liability car insurance protects you:
- First, it offers protection if you’re at fault for an accident and shields you from paying for their property damages, injuries and even death.
- If an uninsured driver hits you, the insurance will then cover your property damages, injuries, or death.
- Provides accident benefits and Statutory Accident Benefits Schedule, which simply protects you, the policy owner and driver.
As you’re probably aware, accidents can happen out of nowhere and extremely fast. Sadly, they often are a mistake that drivers make, but they can send you down a black hole of legal battles, which is a massive pain. Having third-party liability car insurance that is best suited for you can help with the “pain” of legal issues if they wherever to occur.
What does third-party liability coverage include?
Now you have a brief understanding of third-party liability insurance, let’s discuss more what it generally covers to ensure you know exactly what you are purchasing. This insurance provides you with excellent coverage when you’re liable for the accident. It protects you from any personal injury or property damage claims that may be filed against you. Below are some examples of how third-party liability can insure you.
- By accidentally colliding with a pedestrian, cyclist, or anyone who isn’t driving a motorized vehicle, you’ll be insured for any personal injury or death claims.
- Following suit from the above, if you cause damage, injury, or death in an accident that involves a mortised vehicle, you’ll be covered.
- If you cause damage to a business, or anyone’s personal property such as a sign, garage or post box, you’ll be insured for any damages that have occurred by accident.
The bare minimum liability for most provinces is around $200,000 but $50,000 in Quebec. However, having liability more than this isn’t a bad idea in case of a serious event. Be aware that you’re not sure how much liability an accident may encounter. For example, if you crash into a luxury sports car, although this is unlikely, it’ll have a much higher repair cost than you’ll need to pay.
Do I Need Third Party Liability Car Insurance?
It’s a legal requirement to have the bare minimum third-party liability insurance for your province in Canada. If you’re caught without car insurance in Canada, you can face large penalties, including fines and license suspension.
Without it, you’ll also have to pay for all property damage, injury bills and legal fees straight out of your pocket if an accident occurs. Without a doubt, this could be huge and will certainly lead you into bankruptcy and rather big regrets.