Why is it important to have a third- party liability insurance?

Auto insurance, including third-party liability coverage is mandatory in Canada. If you drive without it, you can face fines, a license suspension, and much more if you’re involved in an accident. Third-party liability coverage is especially important, because it protects you from the many costs associated with an accident. Without it, you run the risk of bearing the responsibility for hefty expenses such as legal fees, settlements, medical bills, property damage, lost income, and more. This could easily cost you tens of thousands, or even millions of dollars.

How much third-party liability do I need?

Provincial and territorial minimums don’t provide adequate coverage. Consider the potential costs of a serious accident. You could easily surpass these limits and bear the responsibility for a considerable amount. Insurance professionals recommend extending your third-party liability coverage to between $1 and $2 million. Talk to your insurance agent or broker if you travel to the U.S. often, carpool, live in a busy metropolitan area, or drive for commercial purposes. They may recommend even higher coverage. Fortunately, additional coverage is reasonable and well worth the investment.

Charlene Royston

Charlene Royston has written extensively for the private, public, and non-profit sectors for over ten years. Her experience working with a trust company led to a special interest in personal finance, including mortgages, investments, and retirement options. By simplifying the complex, she hopes to empower others to make more informed decisions.

Latest posts from Charlene Royston

Insurance 5 min

Charlene Royston

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