Third-Party Liability Insurance in Ontario
Third-party liability coverage may protect you when someone else is injured, killed or has property damaged in an automobile incident for which you are legally responsible.
Ontario law requires at least C$200,000 in third-party liability coverage
FSRA says the standard Ontario auto policy includes liability coverage and that drivers must carry at least C$200,000. Consumers can purchase higher limits such as C$500,000, C$1 million, C$2 million or more.
FSRA — Standard auto insurance policy →What liability coverage is for
This section is designed for claims by other people when you are legally responsible for an automobile incident that causes bodily injury, death or property damage. It can also respond to covered legal defence and settlement costs, up to the policy terms and limits.
It is not the coverage that repairs your own vehicle after an at-fault collision. Collision, DCPD and other physical-damage coverages answer different questions.
Why drivers often see C$1 million or C$2 million limits
FSRA says consumers may choose higher third-party liability limits and notes that higher limits cost more. The difference between C$200,000, C$1 million and C$2 million is the maximum liability protection available under this section, subject to the policy.
Canada Rate Lab does not label one liability limit as universally correct. Assets, driving exposure, household circumstances and risk tolerance differ, and licensed advice may be appropriate for a personal decision.
FSRA — Customize liability coverage →Liability coverage can also affect other endorsements
Some optional protections use the third-party liability limit as a reference point. FSRA's summary of OPCF 44R Family Protection, for example, describes protection to the same limits as your third-party liability coverage in certain underinsured, uninsured or unidentified-driver situations.