Get the best third-party liability car insurance quotes in Canada.

Accidents can happen. Protect yourself from third-party liability claims.

Compare rates from car insurance companies you trust

sonnet insurance logo
Intact insurance logo
CAA logo
Aviva logo
Allstate Insurance Logo
Jevco insurance logo
Economical Insurance logo
Zenith Insurance logo
Gore Mutual Insurance logo
Cheiftain Insurance logo
Wawanesa Insurance Logo
Coachman Insurance logo
Dominion logo square.png
Desjardins Insurance logo
echelon insurance company
PAFCO insurance logo
pembridge insurance logo
Scottish & York Insurance logo

How to get your auto insurance quotes on RATESDOTCA

Ready to compare quotes and save?

New icon step 1 auto insurance

Tell us about your vehicle

Answer a few basic questions about your driving & car insurance history.

New icon step 2 auto insurance

Compare your quotes

See quotes from insurance companies side by side.

New icon step 3 auto insurance

Choose the right coverage

Find the right protection for your vehicle.

New icon step 4 auto insurance

Get Covered

Connect with the provider and secure your rate.

What others have to say

Rating stars

Based on 3,352 reviews

 Trustpilot logo

What is third-party liability car insurance?

Third-party liability car insurance covers you against losses incurred due to third-party damage claims when you have an at-fault accident. This includes damage to someone else’s property, bodily injury or death.

Why do I need third-party liability car insurance?

If you are involved in a car accident and found to be partially or totally at fault, third-party damages can be costly. Being at fault makes you liable for damages suffered by other people, including injuries and property damage. Third-party liability car insurance covers both you and your listed drivers from third-party claims.

Most importantly, third-party auto insurance is mandatory across all provinces in Canada. A vehicle must be protected by this coverage to legally be out on the road.

Ontario third-party liability car insurance requirements

In Ontario, it is a mandatory to have a minimum of $200,000 in third-party liability car insurance coverage. It is important to note that the majority of drivers prefer to choose a $1,000,000 third-party liability coverage over the required minimum as a necessary precaution against third-party claims. If third-party liability claims exceed your insurance coverage, you are personally responsible for the amount exceeding your coverage.

If the claim against you exceeds the coverage your policy provides, the victim(s) can sell your assets and garnish your wages to collect the amount.

Alberta third party liability car insurance requirements

In Alberta, the legal minimum for third-party liability car insurance coverage is $200,000. It is interesting to note that more than 98% of vehicles are insured for at least a $1,000,000 in third-party liability coverage.

This means the majority of drivers in Alberta believe in having a wider safety net against third-party accident claims, gaining greater protection in the event they are involved in an at-fault accident.

(Source: AIRB Alberta)

What does third-party liability car insurance cover?

A standard third-party liability car insurance policy covers:

  • Medical bills in case of injuries to a third party (including pedestrians, cyclists, and fatalities)
  • Repair costs to any damaged vehicles
  • Repairs or replacement of damaged property
  • Legal fees and lawsuits
  • Damages awarded to the injured parties

What type of damage is protected by third-party liability?

Essentially, a third-party liability insurance policy offers protection against the expenses associated with damage or injury suffered by someone other than yourself. This type of expense may be incurred in a wide variety of events. Some examples of accidents a third-party liability car insurance policy will cover are:

  • Knocking over a neighbor’s fence while reversing your vehicle.
  • Hitting a cyclist or pedestrian with your vehicle and injuring them.
  • Losing control of your car due to weather conditions and damaging someone’s property.
  • Damaging someone’s car in a collision you are deemed to be at fault for.
+ Expand
Latest auto articles
Ontario Car Insurance Rate Decisions: February 2021 Report
The Financial Services Regulatory Authority published its rate change decisions for February. Get the details on whether or not your insurer was approved to increase or decrease its rate.
IIHS Names the Safest Vehicles on the Road in 2021
Safety-conscious drivers rejoice: The Insurance Institute for Highway Safety says 90 vehicles earned either its Top Safety Pick+ or Top Safety Pick award this year. That’s a heck of a leap from the 64 vehicles it recognized one year ago.
11 Poor Driving Habits to Break
Being honest with yourself about your driving habits will help you avoid traffic tickets and collisions and keep your auto insurance rate low.