Guide to Bodily Injury Liability Insurance
Car accidents happen every single day in Canada. Regardless of how long you’ve been on the road or how much experience you have, you never know when a severe accident may occur.
For instance, approximately 300,000 vehicle-related accidents occur every year in Canada. Furthermore, in 2019, over 1,700 accidents resulted in at least one death.
We all know how scary and stressful being involved in a car accident can be, especially if someone gets injured. Thankfully, if you have sufficient bodily injury liability insurance, you won’t have to worry about the financial repercussions of the event.
If you’re not familiar with this type of injury insurance coverage or would simply like to learn more, you can find the information you’re looking for below.
START A QUOTEWhat is liability insurance coverage?
Liability insurance is a type of auto coverage that financially protects drivers that have been in an accident that results in severe damage to one or more parties. There are two primary types of liability insurance in Canada — bodily injury and property damage.
As the name implies, bodily injury insurance is a type of liability insurance that covers expenses related to an injury or death resulting from a car accident. On the other hand, property damage insurance is a type of liability insurance that covers property damage costs related to a vehicular accident.
In this article, we’ll be focusing on the nuances of bodily injury insurance. If you have questions about property damage insurance, don’t hesitate to reach out to your insurance provider.
Is there a difference between bodily injury liability coverage and liability-only insurance?
What an excellent question! These two types of insurance get mixed up by new drivers all of the time. However, they’re both different, so you should be aware of what they are.
As mentioned above, bodily injury liability coverage financially protects drivers if they’re a part of an accident that results in the harm or death of an involved party. After being in an accident, a driver needs to submit a body injury claim to cover the cost of the related damage.
In contrast, liability-only insurance is a type of policy that provides drivers with the bare minimum amount of coverage (except in Ontario).
What is the minimum level of bodily injury liability coverage that you need to drive in Canada?
This is quite a tricky question, as there’s more than one answer.
Technically, drivers can choose their level of liability coverage; it’s not uncommon for drivers to have as much as $2,000,000 in protection.
Having a high level of coverage is beneficial if you do the following:
- You live or commute in an area with high accident rates
- Regularly carpool with others (in your personal vehicle)
- You use your car for work (including self-employment)
- You travel to the United States regularly
However, if you’re an occasional driver, you may not feel that you need that much coverage. So, this brings us back to the question at hand — what is the minimum level of liability required in Canada? In short, the answer depends on where in Canada you live.
Here’s a brief list of the minimum level of bodily injury liability coverage in each province:
- British Columbia - $200,000 obtained through public auto insurance providers
- Alberta - $200,000 obtained through private auto insurance providers
- Saskatchewan - $200,000 obtained through public auto insurance providers
- Manitoba - $200,00 obtained through public auto insurance providers
- Ontario - $200,000 obtained through private auto insurance providers
- Quebec - Free through Société de l’assurance automobile du Québec or $50,000 when obtained through private auto insurance providers (only applies to injuries outside of the province)
- Newfoundland and Labrador - $200,000 obtained through private auto insurance providers
- New Brunswick - $200,000 obtained through private auto insurance providers
- Nova Scotia - $500,000 obtained through private auto insurance providers
- Prince Edward Island - $200,000 obtained through private auto insurance providers
- Northwest Territories - $200,000 obtained through private auto insurance providers
- Nunavut - $200,000 obtained through private auto insurance providers
As you can see, most provinces and territories require a $200,000 minimum for bodily liability insurance coverage (except for Quebec and Nova Scotia...ouch).
Want to save money on insurance without sacrificing coverage?
If you’re tired of overpaying for your liability coverage, or other aspects of your auto insurance, it may be time to re-shop your car insurance policy. Do you want to start comparing policies right away? Then we suggest that you reach out to an insurance advisor online.
Waiting for expensive car insurance quotes is a thing of the past. Our insurance advisors can provide you with up to ten personalized quotes in ten minutes. By teaming up with one of our insurance advisors, you can start saving on car insurance before your next trip to the store.
What doesn’t bodily injury liability insurance cover in Canada?
Unfortunately, bodily injury liability coverage doesn’t protect drivers from everything. For instance, let’s imagine that you’re involved in an accident in which two or more parties are injured (including yourself). In this situation, you won’t receive financial coverage for your injuries if you’re deemed “at fault” (insurance lingo for responsible), just the other parties involved.
Simply put, if you’re responsible for an injury or death on the road, and hurt yourself in the process, only the other driver’s expenses will be covered by your insurance.
Furthermore, due to the nature of this type of insurance, drivers shouldn’t expect to make a bodily injury claim settlement if their vehicle is:
- Stolen
- Vandalized
- Damaged in a hit and run
- Damaged by natural causes (fallen tree, hailstorm, etc.)
How much does bodily liability coverage cost in Canada?
Unfortunately, we can’t give you a precise answer. The price of your bodily injury liability coverage is influenced by several factors, including:
- Location
- Driving/claim history
- Value of your vehicle
- Declared kilometres
You can rely on bodily injury liability insurance to help you in your time of need
If you’re injured in a car accident, the last thing that you want to do is deal with a mountain of injury-related expenses. That’s why bodily injury liability insurance exists — to help you in your time of need.
