Third party liability insurance is one the mandatory coverage options on your car insurance policy. Third party liability protects you financially if you are considered to be responsible for an accident causing personal injury or death. Your liability coverage will pay for accident benefits, medical costs, lawsuits and damages awarded to the injured party, but it will only pay up to the amount of coverage you have chosen. You can choose the amount of your liability coverage depending on what makes sense for your situation.
The minimum liability coverage you must have by law in Ontario is $200,000; however, $2 million is usually the recommended amount for most people. Depending on how you use your vehicle, you may need to consider a higher level of liability coverage. Here are some everyday situations where you might want to have extra liability protection:
Learn more about all mandatory and optional auto insurance coverage options in Ontario.
If a higher level of liability protection is something you’d like to have for both your car and home insurance policies, there is an economical way to add it using an Umbrella Liability Policy. This option provides the additional level of liability coverage you want and applies it to both of your policies. If you’re concerned that your current amount of coverage is not sufficient, instead of increasing it on each policy separately, ask about the umbrella liability option that applies to both.
No-fault insurance simply means that the insurance company for each person involved in the accident pays for damages and injuries no matter who was at fault.
Most provinces now have some kind of no-fault insurance in effect. The type we have in Ontario has an upper limit or a threshold meaning the no-fault clause applies up to a certain limit of liability. If you were injured in an accident, it would be your own insurance that covers you for your medical treatment, loss of income, living expenses, home care, etc.
Do you have questions about the right level of liability coverage? Call Mitchell & Whale Insurance Brokers at 1-800-731-2228 or get a quick online quote. We’d be happy to help you.