Mandatory auto insurance coverage in Canada that pays for bodily injury and property damage you cause to other people in an at-fault accident. Minimum coverage limits vary by province, ranging from $200,000 to $500,000, but most brokers recommend at least $1 million or $2 million in coverage to adequately protect your assets.
Understanding third-party liability is important for Canadian insurance consumers because it directly affects how your coverage works and what you can expect when you need to use your insurance. This concept plays a key role in how your auto insurance policy is structured and how claims are handled in your province.
If you have questions about how third-party liability applies to your specific insurance needs, speaking with a licensed insurance broker can help clarify your options and ensure you have the right level of protection.
Coverage that pays for injuries you cause to other people in an accident where you are at fault. This includes medical expenses, lost wages, pain and suffering, and legal defence costs. In Canada, minimum bodily injury liability limits vary by province, but most brokers recommend carrying higher limits for adequate protection.
A civil wrong that causes harm or loss, for which the injured party can seek compensation through the courts. In Canadian auto insurance, a tort system allows accident victims to sue the at-fault driver for damages beyond what is covered by no-fault benefits. Some provinces, like Ontario, use a modified tort system that limits the right to sue.
A licensed insurance broker can explain how third-party liability applies to your specific situation and help you find the right coverage.
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