Third Party Liability
When shopping around for auto insurance it is important to have a checklist to make sure your policy adequately covers you in case of an accident. The amount of third party liability coverage is something that is usually overlooked and is one of the most important items that will ensure you are protected. For instance, if you have $200,000.00 third party coverage and get into an accident and are sued for injuries and damages your insurer will only cover you up to that amount and you will be personally liable for the excess amount (i.e. any amount over $200,000.00). In this case the Plaintiff’s own auto insurer will usually pay out the excess amount. The Plaintiff’s insurer has the right to seek re-payment from yourself. If you do not pay that excess amount the insurance company has the right to have your driver’s license suspended indefinitely, have your assets seized and your wages garnished. We recommend third party liability coverage of at least $1 million.
Enhanced Accident Benefit Coverage
You may also want to opt for enhanced Accident Benefit coverage which puts a higher limit on what your own insurance company may be responsible to pay to yourself. In Ontario, auto accident benefits are available even when there is a dispute as to who caused the accident, and regardless of fault. Benefits available through your own insurer include income replacement benefits, supplementary medical and rehabilitation benefits, attendant care benefits, funeral and death benefits, and non-earner benefits. In some instances caregiver benefits and housekeeping and home maintenance benefits are also available. The enhanced Accident Benefit coverage will entitle you to recover these benefits from your insurer on a higher scale.
If you have any questions regarding auto insurance or on your existing insurance policy please contact Douglas Strelshik Law.