Get Third Party Liability Car Insurance Quotes for 2024
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Third-party liability car insurance in Canada is your financial shield against the costs of damage or injury you might cause to others while driving. It's an essential part of your car insurance policy, ensuring you're protected from potentially massive out-of-pocket expenses in the event of an accident.
This coverage isn't just a wise choice—it's a legal requirement, making it crucial for every driver on Canadian roads. If you're wondering how it works, we've got you covered.
In this guide, we take you through everything you need to know about third-party car insurance, from coverage options, costs, eligibility, and more. We also have a free tool for you to compare the best car insurance options based on your unique needs right here.
Third-Party Car Insurance: 6 Key Takeaways
- Mandatory in Canada and covers damage to others, not your vehicle.
- Coverage amounts vary by province, typically between $200,000 to $500,000.
- Exclusions: damage to your car and personal belongings and medical expenses.
- It works by providing financial protection if you cause an accident.
- Top providers: Intact, Pembridge, Belairdirect, Johnson, and SGI Saskatchewan.
- Compare third-party car insurance coverage using our free tool.
What is third-party car insurance?
Third-party car insurance, also known as liability insurance, covers the costs associated with damage you cause to other people's property and injuries you inflict on them while driving, but not damage to your vehicle. It's the minimum legal requirement for driving in Canada, with specific coverage amounts varying by province.
Here are some key points to remember about third-party liability car insurance
- Amounts: Each province sets its minimum coverage requirements for third-party liability. These typically range from $200,000 to $500,000 for property damage and bodily injury combined.
- Exceptions: In some provinces, government-owned vehicles (like municipal buses) may be exempt from mandatory third-party insurance, but this is not the norm.
While third-party insurance is the legal minimum, it's important to consider whether it provides sufficient coverage for your individual needs. Additional forms of coverage, like collision and comprehensive, can protect your vehicle and belongings in case of accidents, theft, or natural disasters.
Explore different kinds of car insurance policies in Canada using our comparator. Get personalized quotes and compare coverage based on your unique needs right here.
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What does third-party car insurance cover?
Here is what third-party liability insurance covers:
- Third-party property damage: If you're at fault in an accident, this covers repairs to the other driver's vehicle, damaged buildings, fences, or other property.
- Third-party medical expenses: This covers medical bills for individuals injured in the accident due to your fault, including costs associated with treatment, lost wages, and disability.
- Legal defense costs: If you're sued due to an accident, your insurance company will provide legal representation and cover associated costs.
Third party liability insurance does not cover:
- Damage to your vehicle: If you're in an accident, regardless of fault, repairs to your car are not covered by third-party insurance.
- Personal belongings: Damage to your belongings within the car is not covered.
- Medical expenses for yourself or passengers in your car: These costs are not covered under this insurance.
Good to know
What is third-party liability car insurance?
It’s just another name for third-party insurance for cars, offering the same coverage.
How does third-party car insurance work?
It works by protecting you financially if you are found at fault in an accident that causes damage or injury to others.
Consider this scenario: You're driving and accidentally rear-ended another car at a stop sign, causing damage to their vehicle and injuring the driver.
Here’s how third-party insurance works in this case:
- Claim is filed: The injured driver and/or owner of the damaged car files a claim with your insurance company.
- Liability is determined: Your insurance company investigates the accident to determine who was at fault. If you're found responsible, the claim proceeds.
- Coverage kicks in: Up to the limits of your policy, your insurance company pays for:
- Property damage: Repairs to the other driver's car and any other damaged property (e.g., fences, buildings).
- Medical expenses: The injured driver's medical bills, including treatment costs, lost wages, and disability benefits.
- Legal defense: If you're sued due to the accident, your insurance company provides legal representation and covers associated costs.
What are the minimum coverage requirements for third-party car insurance?
It varies from province to province.
Here are the details about the minimum coverage requirements for third-party car insurance across Canada:
| Province/Territory | Minimum Coverage (Combined Bodily Injury & Property Damage) | The Alberta Automobile Insurance Rate Board (AIRB) regulates auto insurance and provides resources on its website. |
|---|---|---|
| Alberta | $200,000 | The Insurance Corporation of British Columbia (ICBC) is the province's sole provider of mandatory auto insurance. |
| British Columbia | $200,000 | The Manitoba Public Insurance Corporation (MPIC) is the province's sole provider of mandatory auto insurance. |
| Manitoba | $200,000 | The Manitoba Public Insurance Corporation (MPIC) is the sole provider of mandatory auto insurance in the province. |
| New Brunswick | $500,000 | NO |
| Newfoundland and Labrador | $500,000 | |
| Northwest Territories | $200,000 | |
| Nova Scotia | $500,000 | Includes Accident Benefits coverage. |
| Nunavut | $200,000 | |
| Ontario | $200,000 | Includes Accident Benefits coverage. |
| Prince Edward Island | $500,000 | |
| Quebec | $50,000 (Bodily Injury) | Requires separate policies for Bodily Injury (SAAQ) and Property Damage (private insurers). |
| Saskatchewan | $200,000 | The Saskatchewan Automobile and Motorcyclist Corporation (SAM) is the sole provider of mandatory auto insurance in the province. |
| Yukon | $200,000 |
These are just the minimum requirements. You can purchase additional coverage if you want more protection.
<strong>Third-party car insurance Ontario</strong>
The limits specified above are combined totals for both bodily injury and property damage. For example, in Ontario, the $200,000 limit could cover $150,000 in bodily injury and $50,000 in property damage or any other combination as long as the total doesn't exceed $200,000. Check our Car Insurance Ontario guide for complete details.
How much is third-party car insurance?
Third-party car insurance cost varies based on several factors.
These factors include:
- Province/Territory: Minimum coverage requirements and insurance regulations differ by province, influencing pricing.
- Driver Age and Experience: Younger drivers and those with less experience typically pay more due to perceived higher risk.
- Driving History: Accidents, tickets, and claims lead to higher premiums.
- Vehicle Type and Value: Premiums often increase with higher vehicle value and riskier models.
- Location: Urban areas with higher accident rates generally have higher premiums compared to rural areas.
- Coverage Amount: Choosing higher coverage limits beyond the minimum will raise the cost.
- Deductible: Selecting a higher deductible lowers your premium but means you pay more out-of-pocket for claims.
- Discounts: Qualifying for discounts (e.g., good driving record, multiple car policies) can reduce costs.
Here’s a sample quote for a 30-year-old driver with a clean driving record living in Ontario, Canada. He drives a mid-size sedan and is looking for basic third-party liability coverage with limits of $1,000,000:
| Criteria | Details |
|---|---|
| Basic Liability Coverage | $1,000,000 limit |
| Age of Driver | 30 years old |
| Location | Ontario, Canada |
| Type of Vehicle | Mid-size sedan |
| Driving Record | Clean |
| Annual Premium | $800 - $1,200 |
If you want to find options for cheap third-party car insurance in Canada, you can use our comparator. You can also use it as a third-party car insurance premium calculator and get quotes from leading providers.
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Top 5 third-party car insurance in Canada
The best option might vary due to your individual needs, but here are 5 reputable third-party car insurance providers in Canada:
- Intact car insurance: A leading insurance company in Canada and globally, Intact offers various car insurance options, including third-party liability coverage.
- Pembridge: Owned by Intact, Pembridge caters to drivers seeking affordable car insurance, including third-party liability coverage.
- Belairdirect: Known for its competitive rates and online focus, Belairdirect provides third-party car insurance and additional coverage options.
- Johnson Insurance: A regional insurance provider in Western Canada, Johnson Insurance offers competitive rates for car insurance, including third-party liability coverage.
- SGI Car Insurance: The Saskatchewan Government Insurance (SGI) is the sole auto insurance provider in Saskatchewan, offering mandatory third-party liability coverage and optional add-ons.
What about <strong>Amica third-party car insurance</strong>?
Amica Mutual Insurance does not offer car insurance in Canada. The company only operates in the United States.
Do I need third-party car insurance?
Deciding whether third-party car insurance is the right choice for you depends on several factors, including your budget, risk tolerance, and driving habits.
Understanding its pros and cons can help you weigh your options:
Pros:
- Cost-effective: Third-party insurance is the cheapest form of car insurance, making it a good option for budget-conscious drivers or those who drive infrequently.
- Meets legal requirements: It fulfills the minimum legal requirement for driving in Canada, ensuring you avoid fines and penalties.
- Provides basic protection: It covers expenses related to injuries and property damage caused to others in an accident, offering peace of mind.
- Straightforward: Coverage is basic and easy to understand, making it a good choice for those seeking simplicity.
Cons:
- Limited coverage: It only protects others, not your vehicle or belongings, leaving you financially responsible for repairs or replacements in case of an accident, regardless of fault.
- Potential high out-of-pocket costs: Depending on the severity of the accident and resulting damage, you could be responsible for significant financial burdens.
- No protection for personal injuries: Medical bills and lost wages due to injuries sustained in an accident are not covered, potentially leading to financial hardship.
How much third-party liability car insurance do I need?
As we discussed, each Canadian province/territory sets its minimum coverage requirements for third-party liability insurance.
These typically range from $200,000 to $500,000 for combined bodily injury and property damage. This is the legal minimum you must have to drive legally.
Beyond the minimum:
- Consider the potential costs you might face if someone sues you due to an accident exceeding the minimum coverage. Legal fees, medical expenses, and property damage can quickly surpass the minimum limits.
- Think about your financial situation and risk tolerance. Are you comfortable potentially covering significant costs out-of-pocket if an accident occurs?
- Evaluate your assets and potential liabilities. Owning a valuable car or property increases the potential financial impact of an accident.
Before you choose any policy, compare third-party car insurance quotes to get the best deal. You can use our comparator below to explore the best car insurance coverage options and get instant quotes.
Compare Canada's best car insurance plans
Do you need third-party liability insurance for rental cars in Canada?
Third-party liability coverage is crucial when you're renting a car, as it protects you from being financially responsible for damage or injuries you may cause to others. Although rental companies often include basic third-party liability insurance, it might not fully cover all potential claims against you.
For example, if your rented vehicle accidentally damages another car or injures someone, and the costs exceed the rental agency's provided coverage, you could be liable for the difference.
Good to know
If you're looking to rent a car and considering car insurance, check out our full and easy guide on rental car insurance in Canada right here.
Before renting, check if your car insurance or a credit card used for the rental extends sufficient third-party liability coverage to avoid extra expenses. If there's a gap, consider purchasing additional coverage from the rental agency.
Imagine you're renting a car and accidentally rear-ended another vehicle, causing significant damage and injury. Without adequate third-party liability coverage, you could face substantial out-of-pocket costs for repairs and medical bills.
