Third Party Liability
Liability coverage pays for a legal claim against the policyholder in the event that he or she is in some way responsible for an accident that causes harm or damage to a third party. Most drivers purchase more than the minimum coverage required by law:
$50,000 in Quebec, $200,000 elsewhere.
In general we recommend a minimum of $2,000,000 limit. Furthermore, an Umbrella Liability Policy can provide you with additional limits on a broader coverage basis, all at a reasonable cost.
Physical Damage Coverage (own damage)
Physical damage coverage can be broken down
into these sections:
- Collision coverage pays for the repair of a policyholder's vehicle if the vehicle is damaged in a collision where the policyholder is at fault.
- Comprehensive coverage is part
of the policy that covers damage other than
collision, such as vandalism, theft or fire.
- All Perils coverage is the combination
of the two - (Collision + Comprehensive)
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Auto Insurance - Coverage Considerations