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At Diamond and Diamond, the team stresses the need for drivers in Canada to understand auto insurance, especially liability coverage. With the increasing number of vehicles on the road, having adequate liability coverage is not just a legal requirement; it serves as a critical safeguard for financial well-being. The firm’s Managing Partner, Sandra Zisckind, discusses what liability coverage entails and outlines why every driver should consider increasing their coverage beyond the industry minimum.
What is Liability Coverage?
Liability coverage is the portion of an auto insurance policy that protects drivers if they are found responsible for causing an accident that results in injury or property damage to another party. In Ontario, the minimum required coverage is $200,000; however, many experts recommend higher limits due to the potential costs involved in serious accidents.
“As personal injury lawyers, the team at Diamond and Diamond often sees the consequences of insufficient liability coverage,” says Sandra Zisckind. “The financial ramifications can be devastating, not just for the injured party, but also for the at-fault driver who may face legal and medical costs that far exceed their coverage limits.”
The Risks of Inadequate Coverage
The risks associated with inadequate liability coverage are significant. If a driver is involved in an accident and their liability coverage falls short of covering the damages and medical expenses incurred by the other party, they could be held personally responsible for the difference. This situation could lead to paying out-of-pocket, facing lawsuits, or even having wages garnished.
“Many drivers underestimate how quickly costs can escalate following an accident,” Zisckind warns. “In cases involving serious injuries, medical bills can soar into the hundreds of thousands or even millions of dollars. Without adequate coverage, the financial burden can be overwhelming.” On an episode of the Know Your Rights podcast, Sandra discusses why it’s not always the best idea to go for the cheapest coverage.
Legal Implications
In Ontario, the legal system holds drivers accountable for their actions on the road. If a driver causes an accident and is found liable, they could face legal action. Having sufficient liability coverage ensures that they have the resources to defend themselves and cover any awarded damages.
“Insurance is designed to protect individuals in unforeseen circumstances,” Zisckind explains. “The legal process can be complex and costly, and adequate liability coverage can help alleviate some of that burden.”
Peace of Mind
Beyond the financial aspects, adequate liability coverage provides peace of mind. Knowing that one is protected against potential claims allows drivers to operate their vehicles with confidence. This assurance is especially important in Canada, where busy roads and unpredictable driving conditions can lead to accidents.
Conclusion
At Diamond and Diamond, the team emphasizes the importance of being proactive about auto insurance. Evaluating liability coverage and considering higher limits can safeguard drivers against unexpected financial hardships.
“Insurance is an essential part of responsible driving,” says Zisckind. “We encourage all drivers to review their policies regularly and ensure they have adequate liability coverage to protect themselves and others on the road.”
If you or a loved one are unsure about how to navigate the next steps after an accident, it’s important to speak with a knowledgeable personal injury lawyer. Diamond and Diamond’s hotline is open 24/7–contact the firm any time at 1-800-567-HURT.
About Jeremy Diamond
Jeremy Diamond is a lawyer and member of both Ontario and Florida Bars. Jeremy practices in the area of Plaintiff personal injury litigation. Click here to learn more about Jeremy Diamond.