Drivers need property damage liability insurance because it protects against damage to others property including the loss of use of their property. Auto Third Party Liability Insurance is designed to provide the best protection for the liability imposed by Ontario Law, which would also be similar in other Canadian Jurisdictions like Alberta upon the insured for bodily injury or death of any persons or damage to their property due to the driver, or operator of the vehicle. Generally speaking, any High Risk Auto Insurance Driver’s legal liability stated in each provincial Insurance Act (For example Ontario’s Insurance Act). The legal liability stated in the various Insurance and Statutory Acts state the laws governing motor vehicle traffic. These Acts determine an individuals liability in specific situations referred to other laws and courts.


Insurance Policy: Third Party Liability

Under the Third Party Liability section of an insurance policy, the insured means not only the individual named in the policy but also any persons who drive the vehicle with the consent of the named insured. What this means is that the insurance policy allows for a transfer of coverage from the original owner to any other person driving the car so long as they have the owner’s permission.


Third Party Liability in Canada

All Canadian provinces require that all car owners have a minimum amount of Insurance to be legally allowed to drive a car anywhere in the province. In each Province and Territories, the individual Insurance Acts state the minimum limits of insurance coverage allocated in each loss.

A minimum amount of Third Party Liability Insurances required in all Provinces and Territories; this rule requires Insurance Companies only to sell insurance that is above the minimum amount. In Ontario, the minimum limit required by law is $200,000. However, few if any Insurance companies sell policies with minimums less than $1,000,000. The law also provides for priorities of payment in case the amount if insurance is not sufficient to satisfy all claims arising out of one accident.


Proof of Insurance in Ontario

Also, each insurance act requires that drivers provide evidence that they have purchased sufficient Third Party Liability Insurance which is commonly known as “proof of insurance” or in Ontario the “pink card.” This proof is required to be carried in the insureds car so that it can be provided to law enforcement or police officer in any Province or Territory to show evidence that the vehicle is

Although Car Third Party Liability Insurance coverage is a contract between the insurance company and the individual insured, Third Party Liability payments are made because of bodily injuries or property damage suffered by or to third parties, for which the insured is considered to be legally liable. There are, however, situations when Insureds may have voided or negated their insurance policy. These actions if happened while the insured is involved in an accident, then usually the Insurance coverage does not apply. Legal provisions in the various Legal Acts protect innocent third parties from these kinds of situations.

The Insurance acts of the individual provinces contain provisions such as “Absolute Liability” which is the liability associated with dangerous actions by the driver. Often these cases involve the driver having explosives or other violations of the Criminal Code in the vehicle, and thus negligence does not have to be proven.