Ask Anne Marie: How Much Coverage Does Liability Auto Insurance Provide?

Every week we’ll highlight the best question sent to our resident insurance expert, Anne Marie Thomas. This week’s question comes from someone who is questioning how much liability coverage they should purchase with their car insurance.

Daniel asks:

"Typically, how much coverage does liability auto insurance provide?”

Liability insurance is mandatory in Canada, but the limit can range across the provinces.

"The minimum in Ontario is $200,000,” Anne Marie explains. However, drivers are able to purchase policies that provide more than the bare minimum.

"You can purchase anywhere from $200,000 to $2 million of liability coverage,” says Anne Marie.

"Most insurance professionals would recommend no less than $1 million."

Liability coverage can protect you against damages to property, medical expenses, and legal responsibilities if that third-party were to sue.

It can protect you in the event of an accident where you are injured (first-party), or if you were at fault for injuries to others (third-party). While $200,000 might seem like a lot of coverage, medical expenses can rack up quickly.

The Insurance Bureau of Canada lists a summary of minimum coverages in Ontario, which include:

  • Compulsory minimum third-party liability
  • Direct Compensation Property Damage (DCOD) requirement
  • Medical payments
  • Funeral expense benefits
  • Disability income benefits
  • Death benefits
  • Right to sue for pain and suffering
  • Right to sue for economic loss in excess of no-fault benefits

Mistakes happen, and they may be covered by the $200,000 minimum coverage, but for a few more dollars you could have extra protection. If an accident were to be severe enough, you could be held responsible for the victim’s additional damages if they surpass the insurance coverage.

Thinking about increasing your liability coverage? Compare auto insurance quotes on

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