What is Liability Insurance and Why is it Important?
A good auto insurance policy can protect you from paying out high fees following a severe accident. There are many coverage options available which can help with everything from uninsured motorists to theft. Because car insurance is mandatory in Ontario, many drivers go for the most affordable option that allows them to drive legally. For that reason, liability insurance is the most popular option.
Do I Need Personal Liability Insurance?
Aside from the fact that liability insurance is required by law for all drivers in Ontario, personal liability insurance can provide you with the necessary coverage you need while on the road.
In Ontario, it is not only wise to have liability insurance, but it’s also legally required for you to do so. Failure to have the necessary amount of coverage could result in paying out expensive fines, the suspension of your license or in some cases, even having your car impounded.
Accident benefits coverage is also part of the required auto insurance coverage drivers need in Ontario. The coverage offers supplemental care for drivers injured in an accident, and it doesn’t matter who is at fault. It can help pay for your medical care, rehabilitation, and attendant care. It can also help with the loss of income while you are out of work.
What is Liability Insurance?
Liability auto insurance is the mandatory type of coverage required for all drivers in Ontario. It is the most basic form of coverage and covers any damages to property or another individual due to an automobile accident. The minimum amount of liability coverage required in Ontario is $200,000. However, we encourage for all of our clients to have an minimum of $2 Million liability coverage for in the event that there is an accident that results in severe injuries or fatality. Today trends show that there is an increase of legal proceedings that have resulted from an at fault accident. Your $2 million liability coverage is there in the event that a judgement is made against you.
Liability covers two main areas, bodily injury and property damage.
Bodily Injury Liability Insurance
Bodily injury liability insurance covers the cost of medical care and loss of income if you cause an automobile accident and injure another person. This coverage can also help pay for any legal fees you endure if you are involved in a lawsuit because of the crash.
Bodily injury liability coverage may also pay for follow-up visits to the doctor or purchasing any medical necessities such as crutches. This coverage is in addition to any emergency care the injured person may receive,
This coverage will pay for loss of income if the injured person cannot return to work for a while following the accident. Being out of work will cause them to suffer a loss of income as a result. Bodily liability coverage can supplement their income so they can pay their bills and support their family while out of work.
Property damage liability coverage helps pay for damage to another vehicle that you cause in an automobile accident. It can cover repairs to their car. Property damage coverage can also take care of damage to a fence or building.
This coverage typically will not take care of the cost of repairs to your vehicle. If you are interested in that type of coverage, you should add on collision coverage. This add-on will cover repairs to your car in the event of an accident, even if you were the one at fault.
A liability insurance policy in Ontario covers the mandatory minimum of $200,000, but in most cases, that is not enough. The majority of drivers often add on to that amount and carry at least $1,000,000 in property damage liability.
What is an Umbrella Policy?
An umbrella policy is an additional coverage option you may need if you are involved in an automobile accident. This coverage can protect you from certain lawsuits. It can also cover all legal expenses or loss of income for yourself while you are preparing your case.
Adding on umbrella coverage can be very useful for any driver, but it is especially helpful for homeowners, anyone who owns a rental property, or frequent travelers. It is also a good option for those who volunteer for school trips or outings or anyone who volunteers for a non-profit organization where they are responsible for several passengers while traveling.
Contact Duliban Insurance Brokers for More Information About Liability Insurance
If you would like to learn more about liability auto insurance and the minimum amount of coverage you need to drive legally in Ontario, you can get in touch with the car insurance experts at Duliban Insurance Brokers. We have helped the residents of Ontario with all their auto, home, and business insurance needs for decades and can assist you with finding the best policy to suit your needs. Contact us today at 1-855-385-4226 for assistance.