Third party liability insurance can be used to pay for the costs incurred by a lawsuit that may otherwise result in financial destitution or bankruptcy.

How long does third party car insurance work. Here are five things to keep in mind before you drive your vehicle over the border. With the standard minimum of 200000 in third-party car insurance mandated by most provinces many insurance policies extend the coverage on third-party damages and injuries to operating a rental. Also car insurance renewal from time to time is equally important.

Third-party liability coverage is a mandatory level of insurance that all drivers must have when operating a vehicle in Canada. What is Third-Party Car Insurance. Third party is the least expensive car insurance policy type.

A third party is defined as a person or group apart from two other parties who are primarily involved in a legal transaction such as an individual and hisher insurer. You damage somebody elses car eg in a traffic accident or hitting a parked vehicle. How Does Third Party Liability Coverage Work.

If you want any more than that youll have to purchase extra. The minimum amount of third-party liability insurance in Canada is 200000 except in Quebec where its 50000. Additionally having a third party car insurance cover for the persons involved in an accident financially protects individuals from any liability costs that might come up.

How Does it Work. Increase your liability limit. However to be truthful owning a car demands a lot of responsibilities on the part of the car owner.

If you cause injury death or property damage third party liability car insurance is applicable and will cover these claims up to your policy limit. Thats because one accident could easily exceed 200000 and you wouldnt want to be held financially responsible for the rest. Moreover driving ones own vehicle provides a sense of independence and self-confidence.