What is the minimum legislated limit of third-party liability coverage required in all provinces?

The minimum legislated limit of third-party liability coverage required in all provinces is set at $200,000. This means that regardless of the province you are in, all vehicles must carry at least this amount of liability insurance to ensure that if an accident occurs, there are funds available to cover damages or injury expenses incurred by third parties involved.

This limit is established to protect both the driver and the other party in the event of an accident. It ensures that there is a baseline amount of protection available, as higher limits can often be necessary in more severe accidents where damages might exceed the basic coverage amount. By having a standard minimum, insurance companies and policyholders can gauge the basic level of coverage that is deemed necessary to protect the interests of all parties involved.

Higher limits can be offered, and many drivers choose to purchase more than the minimum to provide greater financial protection, reflecting the understanding that comprehensive coverage can safeguard against potentially significant liabilities.