What is Third Party Liability Coverage

Glossary - Letter - T

Third party liability coverage is a part of the insurance policy that addresses issues when, you as a driver, either damage somebody’s property or cause somebody’s injuries or death and have to deal with legal responsibility. Third 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.

Third Party Liability Coverage: Recommendation

Though it 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 the road can be devastating and so can the associated expenses.

It is also important to know that this part of the policy does not cover damages to your vehicle, and will not covered claim costs if your vehicle is stolen or vandalized.

  • 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

Get a free Auto Insurance quote from 10+ Canadian insurers in Alberta