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.
Understanding tort 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 is a foundational insurance concept that applies across multiple types of coverage and is worth understanding regardless of what insurance you carry.
If you have questions about how tort 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.
An auto insurance system where each driver's own insurance company pays for their injuries and certain expenses regardless of who caused the accident. In Canada, provinces like Ontario, Quebec, and Manitoba use no-fault or partial no-fault systems. This approach is designed to speed up the claims process and reduce litigation costs.
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.
A licensed insurance broker can explain how tort applies to your specific situation and help you find the right coverage.
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