Once you purchase a vehicle, the very next thing you need to do is buy an insurance policy. Several elements could be included in your auto insurance, depending on your needs. But, overall, the most important protection is auto insurance liability coverage. That’s why here, we will explain what it is and how much you will need.
Even though there are auto insurance policies that are optional, liability is mandatory everywhere. That means that to legally drive your car inside Canada, you will be required to get auto liability insurance coverage. If you are caught driving uninsured, you might have to pay an expensive fine. Plus, if you are responsible for an accident, you will have to cover all the damages out of your pocket.
Liability auto insurance coverage is crucial since it will pay for all the repairs and medical expenses resulting from an accident you caused. For instance, if you provoke a collision, and damage another persons’ property, your insurance company will pay for it. That way, you won’t find yourself in the middle of a financial disaster.
Now, let’s take a closer look at different aspects of auto liability insurance coverage, including what it protects and its average price.
What is auto insurance liability coverage?
As we mentioned above, a liability policy will cover all the resulting costs from an accident when you are found responsible. Since you will have coverage for somebody else’s car and medical expenses, this policy is divided into two parts: bodily injury and property damage. Keep in mind that liability auto insurance coverage won’t pay for the repairs of your car or medical bills. For that, you will have to get extra protection.
In regards to this policy, these are the following amounts you should look out for:
1.Per person bodily injury
This number determines how much your insurance company will pay for the medical expenses of a single person after the accident.
2. Per accident bodily injury
This is the amount that your insurance will cover for the injuries of everyone that was involved in the accident. Remember that this doesn’t include you since you will need a different policy for that. This part of the coverage will only apply in case multiple people were injured.
3. Property damage
Property damage refers to the maximum amount that your company will pay for the property damaged due to the accident. For instance, somebody else’s vehicle, a part of a building or any other object. This part of the policy only has a limit per accident. That means the coverage will be the same whether you hit one or three cars.
Even though liability protection will always be the most expensive part of your auto insurance policy, depending on the company you choose, you could find affordable premiums. If you are interested in getting the best policy for a great price visit insurance advisors like Surex who are partnered with leading insurance companies to provide you with the best quotes.
What is included?
Many people wonder, what is actually included in the auto insurance liability coverage? This is a great question since it is good to know which expenses will be covered in case of an accident. Let’s start with bodily injury, as we explained before, this part of the policy will cover medical expenses. That means hospital bills, treatments and ongoing costs of the person who got hurt. Here, lost wages are also included.
In case you get sued because of the accident, liability auto insurance coverage will pay for lawyers and court fees. When it comes to property damage, you won’t have to worry about the reparations of another vehicle or restoration of public property.
How much liability coverage do I need?
Auto liability insurance coverage is a requirement everywhere if you want to drive your vehicle. Depending on where you live, there might be a different minimum for your policy. That’s why it is important to talk with your insurance agent. However, without taking into account your individual situation, experts recommend all drivers get liability coverage of $1 million. Even though this might seem like a lot, in the long run, it is the best choice since it will protect your assets.
Let’s picture the worst-case scenario to understand this concept better. Imagine you hit another car, and the damages to the vehicle are severe. Plus, the four passengers are injured. That means that at least you will have to pay $300,000. But, you only have the minimum policy requirement, which at most could be $50,000. That means you will be responsible for paying the rest using your assets.
Since we know you don’t want to lose everything you worked hard for, the best choice would be getting high liability coverage.
What is the cost of liability coverage for auto insurance?
The cost of your policy will depend on how much coverage you want. That means that your premiums will be expensive if you choose higher protection. But, you also need to keep in mind that different factors influence your premiums, such as your age, location and driving record. On average, in Canada, you can expect to pay $1,320 per year. However, in Ontario, the premiums are more expensive.
Do I need auto liability insurance coverage?
The short answer is yes. The first reason why you should get it is that it is a legal requirement. In other words, without liability coverage, you won’t be able to drive your car. Second, as we mentioned before, you need to protect your assets. You don’t want to put at risk your real estate properties, investments, and savings just because you didn’t purchase enough protection.
Having proper auto insurance liability coverage is essential for your protection. That’s why, in case you don’t know how much coverage to get, you should ask for help from an insurance agent. Keep in mind that if you want to find the best policy in the market, you need to do your research. Then, don’t settle down for the first option, ask for several quotes and compare what is included. In the end, you should choose the policy that offers the best benefits.
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