Car accidents are as commonplace as the Internet is. And while, as personal injury lawyers know all too well, they can involve third parties. You are required by law to carry personal auto insurance for your car. You may even be carrying car insurance with a third-party liability clause. You will definitely need your insurance if you are ever involved in an accident that was your fault, and you will definitely need third party liability insurance if someone else drives your car and gets into an accident. The real amount of TPL you need and more is the subject of this article.
Any personal injury lawyer in Stouffville would tell you that you need to understand what third party liability insurance is so that you can decide if you really need it. Third-party insurance applies if your aunt drives your car with your permission and gets into an accident where she is at fault. It is formally referred to as Third Party Liability Insurance (TPL) and is part of all auto insurance policies in Ontario, Canada. Most people have TPL clauses with a $1,000,000 limit, but that number may be very conservative since third party auto accidents can cause substantial property damage and mental and emotional injury to the victims involved. TPL will pay for any court costs and other damages you may be ordered to pay by a judge up to the policy limit. Note that TPL applies to anyone who you choose to give permission to drive your car.
And it doesn’t stop at TPL
Personal injury lawyers know Ontario’s personal injury law. This law requires you to have a personal auto insurance policy with three other types of coverages:
● Accident benefits
● Direct compensatory property damage
● Uninsured auto coverage
Accident benefits: They apply regardless of who was at fault and pay for all associated costs on the part of the plaintiff (the person who is not at fault) up to the clause limit.
Direct compensatory property damage: This applies if the plaintiff shares some of the faults. You will be covered for any bodily injury, mental hardship, and property damage which the plaintiff has endured because of the accident.
Uninsured auto coverage: You will be protected if your car is hit by an unknown vehicle or a driver with no auto insurance. This commonly occurs in hit-and-run accidents. It covers property damage, bodily injury, mental hardship, and wrongful death up to the $200,000 limit.
Then there is the family protection endorsement
Your lawyer will tell you to get this additional coverage because it pays, if you or your family members are hurt because of the actions of a careless or uninsured driver. You can choose the coverage limit for the endorsement, and remember ‘the more the better’ in terms of coverage limits
Third-party liability limits are bad
Hire a lawyer to defend you, if you are ever involved in a third-party auto accident. You will be at fault and having the right defense, legal counsel, and insurance coverage could save you from substantial financial hardship and even bankruptcy.