Liability car insurance is a type of car insurance coverage that is required by law in Canada. It is designed to protect you in the event that you cause an accident and are held responsible for damages or injuries to other drivers, passengers, or pedestrians.

Liability insurance covers two types of claims: bodily injury and property damage. Bodily injury coverage pays for medical expenses and lost wages for any person(s) injured in an accident that you cause, while property damage coverage pays for the cost of repairing or replacing the property of others that you damage in an accident.

In Canada, the minimum amount of liability insurance required by law varies from province to province. However, it’s important to keep in mind that the minimum legal requirements may not be enough to fully protect you in the event of a serious accident. You may want to consider purchasing additional liability coverage to ensure that you have adequate protection.

It’s also worth noting that liability insurance does not cover your own medical expenses or property damage if you are injured or your car is damaged in an accident. To protect yourself in these situations, you may want to consider purchasing additional insurance coverage, such as personal injury protection or collision coverage.

How much liability insurance should I have on my car in Canada?

The amount of liability insurance you are required to have on your car in Canada varies by province. Here is an overview of the minimum liability insurance requirements by province:

1. British Columbia: In British Columbia, drivers are required to have third-party liability insurance with a minimum coverage of $200,000.
2. Alberta: In Alberta, drivers are required to have a minimum of $200,000 in third-party liability insurance coverage.
3. Saskatchewan: In Saskatchewan, drivers are required to have a minimum of $200,000 in third-party liability insurance coverage.
4. Manitoba: In Manitoba, drivers are required to have a minimum of $200,000 in third-party liability insurance coverage.
5. Ontario: In Ontario, drivers are required to have a minimum of $200,000 in third-party liability insurance coverage.
6. Quebec: In Quebec, drivers are required to have a minimum of $50,000 in third-party liability insurance coverage.
7. New Brunswick: In New Brunswick, drivers are required to have a minimum of $200,000 in third-party liability insurance coverage.
8. Nova Scotia: In Nova Scotia, drivers are required to have a minimum of $500,000 in third-party liability insurance coverage.
9. Prince Edward Island: In Prince Edward Island, drivers are required to have a minimum of $200,000 in third-party liability insurance coverage.
10. Newfoundland and Labrador: In Newfoundland and Labrador, drivers are required to have a minimum of $200,000 in third-party liability insurance coverage.

Liability Car Insurance Cost in Canada

Here are some examples of liability-only car insurance costs in Canada for different provinces and cities, based on a sample driver profile of a 35-year-old single male with a clean driving record, driving a 2018 Honda Civic LX:

Ontario:

• Toronto: $1,140/year ($95/month)
• Ottawa: $860/year ($72/month)
• Hamilton: $920/year ($77/month)
• London: $680/year ($57/month)
• Windsor: $680/year ($57/month)

Alberta:

• Calgary: $790/year ($66/month)
• Edmonton: $760/year ($63/month)
• Red Deer: $660/year ($55/month)
• Lethbridge: $570/year ($48/month)
• Medicine Hat: $540/year ($45/month)

Quebec:

• Montreal: $530/year ($44/month)
• Quebec City: $480/year ($40/month)
• Gatineau: $480/year ($40/month)
• Sherbrooke: $400/year ($33/month)
• Trois-Rivieres: $360/year ($30/month)

Please note that these are just example rates based on a specific driver profile and vehicle. Actual rates may vary based on a variety of factors, such as the driver’s age, driving record, location, and vehicle make and model, as well as the insurance company’s individual pricing and discounts.

What is included on liability insurance for car?

Liability insurance for cars in Canada typically includes coverage for third-party claims. This means that if you are found to be at fault in an accident, your liability insurance will cover the cost of damages and injuries that you cause to others, up to the policy limits you have chosen.

Here is what is typically included in liability insurance for cars in Canada:

1. Bodily Injury Liability: This covers the cost of medical expenses and lost wages for others injured in an accident that you are found to be at fault for.
2. Property Damage Liability: This covers the cost of repairing or replacing property that you damage in an accident that you are found to be at fault for.
3. Legal Defense Costs: This covers the cost of a legal defense in the event that you are sued as a result of an accident.

It’s important to note that liability insurance does not cover your own personal injuries or damages to your own vehicle in an accident. For that, you would need additional coverage, such as collision insurance or comprehensive insurance.

Who is Liability-Only Insurance recommended to?

Liability-only insurance is typically recommended to drivers who have an older car that is of limited value, and may not be worth insuring with full coverage. This type of insurance provides the minimum coverage required by law and is usually the most affordable option for car insurance.

Liability-only insurance may be suitable for drivers who:

1. Have an older car that is of limited value: If your car is not worth a lot of money, you may not want to pay for full coverage insurance, which includes both liability and collision coverage.
2. Don’t drive very often: If you don’t drive your car regularly, you may not need full coverage insurance.
3. Have a good driving record: If you have a good driving record and are not likely to cause an accident, you may choose liability-only insurance to save money.

It’s important to note that while liability-only insurance may be the most affordable option, it does not provide any coverage for your own personal injuries or damages to your own vehicle in an accident. So, if you are at fault in an accident, you will be responsible for paying for your own repairs and medical expenses.

Does liability insurance cover car theft?

No, liability insurance does not cover car theft. Liability insurance only covers third-party claims for damages or injuries that you cause to others in an accident that you are found to be at fault for. It does not cover damages to your own vehicle, including theft.

If you want coverage for your own car in the event of theft, you would need to add comprehensive insurance to your policy. Comprehensive insurance covers a range of non-collision damages, including theft, vandalism, fire, and natural disasters. It’s important to understand the specific coverage options available to you and choose the policy that best meets your needs and budget.

What happens if my car is totaled and I only have liability insurance?

Liability Car Insurance FAQs

Here are some frequently asked questions about liability car insurance:

1. What is liability car insurance? Liability car insurance is a type of insurance that covers the cost of damage or injuries you may cause to another person or their property while operating your vehicle. It does not cover damage to your own vehicle or injuries you may sustain in an accident.
2. Is liability car insurance required by law? In most states, liability car insurance is required by law. The minimum amount of liability coverage required varies by state, so it’s important to check with your state’s requirements.
3. What does liability car insurance cover? Liability car insurance covers the cost of damage or injuries you may cause to another person or their property while operating your vehicle. This can include medical expenses, property damage, and legal fees if you are sued as a result of the accident.
4. What is the difference between bodily injury and property damage liability coverage? Bodily injury liability coverage pays for medical expenses, lost wages, and other damages if you are responsible for an accident that causes injury or death to another person. Property damage liability coverage pays for damages to someone else’s property, such as their car or a fence.
5. How much liability coverage should I have? The amount of liability coverage you need depends on several factors, including the value of your assets and the risks associated with your driving habits. Most insurance experts recommend having liability coverage of at least $100,000 per person and $300,000 per accident for bodily injury liability coverage, and $50,000 for property damage liability coverage. However, you may want to consider higher limits if you have significant assets or a higher risk of causing an accident.
6. What is the difference between a deductible and liability coverage? A deductible is the amount you pay out of pocket before your insurance coverage kicks in. Liability coverage, on the other hand, is the amount of coverage your insurance company provides for damages or injuries you may cause to another person or their property. These are two separate aspects of your car insurance policy.
7. What happens if I don’t have liability car insurance? If you are caught driving without liability car insurance, you may face legal penalties, such as fines and license suspension. Additionally, if you cause an accident while driving without insurance, you may be personally responsible for paying for any damages or injuries you cause.
8. Can I add additional coverage to my liability car insurance policy? Yes, you can add additional coverage to your liability car insurance policy, such as collision coverage or comprehensive coverage, which can help cover the cost of damage to your own vehicle. However, this will increase your premium.
9. What is the difference between liability car insurance and full coverage car insurance? Liability car insurance only covers the cost of damage or injuries you may cause to another person or their property. Full coverage car insurance, on the other hand, includes liability coverage as well as coverage for damage to your own vehicle or injuries you may sustain in an accident. Full coverage may also include additional coverage options such as collision, comprehensive, and uninsured/underinsured motorist coverage.
10. What factors affect the cost of liability car insurance? The cost of liability car insurance can be affected by several factors, including your driving record, age, gender, location, the make and model of your vehicle, and the amount of coverage you choose. Generally, drivers with a history of accidents or traffic violations will pay higher premiums, while drivers with a clean driving record will pay lower premiums.
11. Can I purchase liability car insurance without owning a car? Yes, it is possible to purchase liability car insurance even if you don’t own a car. Some insurance companies offer non-owner liability car insurance, which provides liability coverage if you are driving a car you don’t own. This can be helpful if you frequently rent cars or borrow cars from friends or family.
12. Does liability car insurance cover me if I’m driving someone else’s car? If you are driving someone else’s car, your liability car insurance may cover you in the event of an accident, but only up to the limits of your policy. The car owner’s insurance may also provide coverage, so it’s important to check with them to make sure you are adequately covered.
13. What should I do if I’m in an accident and someone makes a claim against me? If someone makes a claim against you for damages or injuries caused by an accident, you should contact your insurance company as soon as possible. They will provide guidance on the next steps and may help defend you in a lawsuit if necessary.
14. Can I change the amount of liability coverage on my policy? Yes, you can change the amount of liability coverage on your policy at any time. If you want to increase your coverage, you will likely need to pay a higher premium. If you want to decrease your coverage, you may be able to lower your premium, but it’s important to make sure you are still adequately covered.
15. How can I find the best liability car insurance policy for me? To find the best liability car insurance policy for you, it’s important to shop around and compare quotes from several different insurance companies. You should also consider the reputation and customer service of the company, as well as any additional coverage options they offer. It may be helpful to work with an independent insurance agent who can help you compare policies and find the best coverage for your needs.
16. What should I do if I’m involved in an accident and someone is injured? If someone is injured in an accident, it’s important to call 911 or the local emergency services right away. Even if the injury seems minor, it’s important to seek medical attention. You should also exchange contact and insurance information with the other driver and any witnesses, and report the accident to your insurance company.
17. What should I do if I’m involved in an accident and there is property damage? If there is property damage in an accident, you should exchange contact and insurance information with the other driver and any witnesses, and take photos of the damage. You should also report the accident to your insurance company.
18. What is the claims process for liability car insurance? If you are involved in an accident and someone makes a claim against you, you should contact your insurance company as soon as possible. They will investigate the claim and may negotiate a settlement with the other party. If the claim goes to court, your insurance company may provide a lawyer to defend you.
19. Can I be sued if I have liability car insurance? Yes, you can still be sued if you have liability car insurance, but your insurance company will typically provide a lawyer to defend you. It’s important to make sure you have enough liability coverage to protect your assets in case of a lawsuit.
20. What if the other driver doesn’t have insurance? If you are in an accident with a driver who doesn’t have insurance, your own insurance may provide coverage through uninsured motorist (UM) coverage. This coverage can help pay for damages or injuries caused by an uninsured driver. You may also be able to sue the other driver for damages, but it can be difficult to collect payment if they don’t have insurance or sufficient assets.