Third-Party Liability: Definition
Third-Party Liability Coverage is a part of the insurance policy that covers the cases when you as a driver either damage somebody’s property or cause somebody’s injuries or death and have to deal with legal responsibility. 3rd Party Liability Coverage is mandatory in Canada and its minimum is $200,000. You are not allowed to operate a vehicle without this insurance coverage.
How Much Liability Do I Need?
Though $200,000 appears like a significant amount, it is highly recommended to increase this limit up to $1,000,000 or $2,000,000. Legal costs and consequences of an accident on a road can be devastating and so the associated expenses.
- Interested to save on your auto insurance? Get a free quote today
- Discover the lowest auto insurance rate across numerous insurance companies
- Spend 15 min to start saving hundreds of dollars annually