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In Ontario, you are expected to carry active car insurance coverage if you drive. It must include liability coverage. As the name suggests, ‘liability’ covers damages caused to others. When you are using or operating your car. It could include damage to property, bodily injury, or even a fatality. All these losses are huge financial upsets to afford in the event of an accident. The medical bills, treatment costs caused to others due to an accident may be very expensive.

That could be a reason why the law in Ontario has made it mandatory to carry third-party liability coverage for car insurance. So, in case someone dies, is injured or there is damage to property due to an at-fault car accident, that can be claimed under this coverage.

As per law in Ontario, the minimum required amount of liability insurance is $200,000. If you wish you may also increase the limit further. If there are legal cases filed against you above this limit it may be your responsibility to cover that amount.

There are three elements in liability coverage.

  • The bodily injury was caused to each person due to the accident.
  • Damage to Vehicle/s involved in the accident.
  • Damage to Property due to the accident.

What Can You Claim Under Bodily Injury Liability For Car Insurance


As per the no-fault system followed in Ontario, no matter who is at fault, any injuries that you suffer due to the accident may be claimed under the accident benefits coverage of your policy. The Statutory Accident Benefits coverage comes under a separate section of your car insurance policy.

When there is an accident there are chances that most of the passengers and drivers may get hurt. If the accident involved more than two vehicles, then the damages could be more. The bodily injury component of liability coverage helps to claim for such injuries. In case, the passengers seated in the other vehicle were injured then they may file a lawsuit against you.

What Can You Clam Under Property Damage Liability For Car Insurance


When you are involved in an accident causing damage to property where you were at fault then, that comes under the property damage component of liability coverage. This also includes two elements such as the damage to vehicle or property. The damage to anyone’s property due to the accident could be severe. It may require costly repairs to restore to original condition if the accident caused structural damage.  Any kind of impact of the accident damaging fences, garages, carports, or part of the building can all be claimed under property liability coverage. The expenses for such repair works may be beyond the means of the owner of the property who may sue for the damages.

The second component could include any damage to the other car involved in the accident for which you were at fault. If more than 2 vehicles were involved then you can only imagine the extent of the loss caused by the accident and the resulting expenses. If that car gets totaled or needs extensive repairs, that could be claimed under property liability coverage under your car insurance policy.

How Can You Save On Liability Coverage


Whether you decide to have mandatory or more than basic liability coverage for your car insurance may depend on many factors. There are many advocates of insurance who believe that liability coverage at the maximum affordable limit is best regarded as safe. Many motorists are not able to afford the ensuing expenses due to damages caused by an unfortunate motor vehicle incident.

So you may have to explore other avenues for saving on car insurance premiums along with keeping a clean driving record.

Increase deductible: If you drive a newer car or an expensive car, you may consider raising your deductible amount. This may benefit you in the form of a discount. In case you have damage to your car that may cost $500 to repair, you may rather pay for it. You may not claim for it and pay a $500 deductible. There are many insurance companies that offer up to 15% to 25% discount on the overall car insurance premium when you increase your deductible amount.

Remove optional coverage: In case you drive an old clunker, you may not need to have all the optional coverage. When you choose to remove comprehensive or collision coverage you may save a lot on your policy. It really may not be worth paying deductible and premiums for optional coverage for an old car that is valued less.

A lot of insurance experts may say if the car is worth less than $2,000 or $3,000 then optional coverage is not needed. So it is vital to know the actual value of your car and how much you could afford in repairs.

Refrain from buying a luxury car: The make model and age of the vehicle do have a say in the calculation of car insurance premiums. Most of these trendy cars are also stolen frequently. You may also try not buying a car that hits the list of most stolen cars maintained by IBC.

Keep a low mileage: By using your car sparingly as and when needed you may save on car insurance premiums.  There are many insurance companies that give discounts for low mileage on cars. Some even pre-decide the mileage that needs to be the benchmark to avail such discounts.

Location: If you are planning to move, it may be a wise idea to check the cost of car insurance for that postal code. While calculating insurance premiums, it does matter where you live and travel or commute to work.

Theft protection devices: If you install anti-theft devices in your car, your insurance provider may give you a discount due to reduced risk. By having an immobilizer, sensors or alarms fitted you could see some savings in car insurance rates.

Shop: You may compare multiple quotes on our car insurance calculator to get a good deal. Just click away and in moments you may be able to compare and choose your car insurance company.

About the Author: Ashley Miller

Ashley is an insurance content professional and very knowledgeable on all related subjects. Ashley has over 12 years of insurance content writing experience working with various insurance companies throughout her career.