Imagine going on a trip and your car gets hit by another vehicle. What is the first thing you do? When you encounter a car accident, many factors should be considered, such as knowing if there were any injuries and who will require medical attention. After the fact, you might also need to file a claim with your insurance company to cover your car damages and possibly those for the other party involved. This is where liability insurance comes in.
Liability insurance is coverage mandated by some provinces to be added to your car’s insurance policy to drive in Canada legally. When you get into an accident, if you’re found to be at fault, you’ll need to pay damages for the parties involved including other drivers, pedestrians, and owners of property. Liability insurance helps cover those costs. To help you further understand this policy, let’s go over the essentials, including what the policy covers.
What is Liability-Only Coverage?
Before we detail what this policy covers, you should understand liability-only coverage. This means that an individual asks for insurance that only has liability coverage for their vehicle The amount is typically the minimum that their insurance will cover as required by law. In Ontario, for instance, liability will cover DCPC, uninsured cars, and accident benefits.
Liability Auto Insurance Coverage
Your liability auto insurance policy covers two different types of claims. Bodily injury coverage is responsible for the injuries you caused to other people during an accident provoked by you, including costs related to their medical bills and prescriptions. There are some circumstances where this will cover lost wages or legal fees if a lawsuit has been filed. Property damage coverage is the other claim type, which will help you pay for damages caused to the other person’s property resulting from the accident, such as their vehicle. This can also include fences, buildings, and otherwise.
What is Not Covered Under Liability Insurance for Vehicle Owners?
Because liability covers the damage you cause to others during an accident, it will not cover any of your injuries. If you have been in an accident and have a liability-only auto policy, you will have to pay for damages to your car. However, your car insurance will cover expenses like your medical bills under the accident benefits section. If you want to be covered for damages to your property including theft, vandalism, or physical damage, you will need collision coverage.
Who is Liability-Only Insurance Made for?
Having insurance that only covers liability is not ideal for everyone. Some people may require more coverage, such as those who have their vehicle leased. However, full coverage is not for everyone, either. Some factors to consider in what policy to get include the following:
- Your vehicle’s age
- The mileage on your vehicle
- Repair and maintenance expenses
- Overall condition of your vehicle
How Much Does Liability-Only Insurance Cover?
Liability insurance varies depending on your needs and what kind of vehicle you drive. It is not a one-size-fits-all policy. You may need more or less coverage than you think. Insurance companies offer different levels of coverage and prices.
When faced with the potential of an accident involving your vehicle, you need to be prepared. Understanding your rights and what your auto insurance covers is vital. Whether you are in need of full coverage or liability only, you deserve to make a well-informed decision. At Tanner Insurance, we are experts when it comes to car insurance, including liability coverage. We’re happy to work with you in finding an ideal policy. Contact us today to learn more!