Most Ontario automobile owners purchase higher third party insurance liability limits than the mandatory minimum coverage of $200,000. However, I suggest that the reason a consumer chooses higher coverage (usually $500 thousand or $1 million) is only due to the fact their insurance agent suggests this amount will help keep the overall automobile insurance premium down.
While your insurance representative will be able to help you decide what level of coverage is best for you, it helps to be well-informed about what is available to you before making that call.
The current Ontario law requires that each motor vehicle owner carry a minimum of $200,000. This minimum amount has been in place for decades in Ontario despite the fact that injury awards have increased to keep up with inflation over the years. Take for example, if you were found at-fault for a motor vehicle accident back in 1978 and rendered an accident victim such as a quadriplegic, the courts would have awarded the injured victim approximately $100,000 for pain and suffering. Of course this award would not include other losses for possible past and future medical and/or income losses.
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