What is Third-party Liability?
In Ontario, third-party liability insurance as a government mandated auto insurance coverage that protects you as an Ontario driver in the event that you are sued (or face the potential of being named in a lawsuit.) Most people don’t have an extra 1 or 2 million dollars lying around to cover lawyer fees and court appointed damages as a result of an auto accident. If one is deemed negligent (responsible for the cause of the accident for something they did or didn’t do), this coverage would respond. Reasons would be sued as a result of an auto related claim would be due to physical injury of a 3rd party or their personal property such as their vehicle, pet. Third party property damage can include a municipally owned traffic guardrail or traffic sign as well. Some may ask how does auto liability insurance coverage work? It’s fairly simple. Let’s say you are driving home from work on a cold winter day and when turning onto your street you hit a patch of black ice and slide into a pedestrian and then hit a neighbour’s fence. The bodily injury of the pedestrian and damage to the fence would be covered under the 3rd party liability insurance portion of the auto policy. The minimum limits required in Ontario is $200,000 but I would recommend that you have at least $1,000,000 third party liability limits since $200,000 is oftentimes satisfactory. “How much 3rd party auto liability insurance should I have” is a question I often get from drivers that I quote or insured currently. I always state at the end of the day that it’s your decision. Keep in mind that if you are sued by an US driver or named in a lawsuit while driving in the united states, an Ontario auto policy only responds in Canadian dollars so even a $2,000,000 limit may have a shortfall.
If you would like to have a conversation to discuss your liability limits, please give me a call at 519-393-3246. To get a quote in the next couple of minutes, please click the link bellow to get the process started. I will follow up later to see if there is anything else that can be done to get you better coverage and service at a cheaper rate.
"We have been with Tradition Mutual Insurance for 60 plus years Kyle is one of the BEST agents we have ever had Full marks on everything!"
I have my car insurance with Tradition Mutual Insurance and am very pleased with the rates as well as the service I have experienced. Kyle will be sure to provide you with excellent customer service answering any question you may have thoroughly and honestly. He has excellent communication skills and does well to ensure that your insurance needs are met and exceeded.
Kyle found me a much better fit for my auto insurance for a cheaper price and was very easy and pleasant to work with! Kyle was very prompt and responsive and never pushy or sales-y. Super great to work with!"
More than the cheapest car insurance but the best customer service and claim experiences you will find in Ontario, Canada