How Does Liability Insurance Work?

car insurance paperwork with car key


Auto liability insurance is mandatory for all car owners in Canada. It covers bodily injury and property damage should you be found at-fault in an accident on Saskatoon-area roads. Knowing the auto liability definition is important, but you’ll also want the specifics on:

  • What does liability insurance cover?
  • What does liability coverage pay for?
  • How does liability insurance work?

In the following guide, the finance team at Standard Motors provides the answers to these questions and more in order to make sure you have all the information you need when setting up the insurance coverage on your new car, truck, or SUV.

How Does Liability Insurance Work?

A Liability-Only policy is one that meets the minimum legal requirements, but you can set your own limits based on how much coverage you want and can afford. Liability insurance provides two types of coverage:

Bodily Injury

  • Medical and hospital bills
  • Any long-term nursing care that may be needed
  • Funeral expenses in the event of a fatal accident
  • Rehab
  • Pain and suffering
  • Lost earnings

Property Damage

  • Repair expenses
  • Necessary part replacement
  • Vehicle damage
  • General property damage (house, personal property, etc.)
  • Pets

Liability Coverage Limits

You should remember that liability insurance provides coverage for the victim of the accident, not the driver at fault. When securing liability insurance in the Kyle area, it is important that you review the liability insurance limits with your agent. The limits can either be split or combined. Here’s how that works:

  • A split limit allows you to select individual maximums for bodily injury payments per person, for all people injured, and all property damage
  • A single limit does not include a total limit per person, as the lump sum will simply be spread across all those injured and all property damaged

Explore Your Auto Insurance Options with Standard Motors

Now that you know the auto liability definition and have some sense of what it covers, you can make a decision regarding the policy limits that will work best for you. The finance specialists at Standard Motors will be happy to help you learn more about liability insurance, as well as help you secure a loan or lease no matter what your credit score may be. Please feel free to reach out if you have any questions, or better yet, stop by our dealership near Regina and chat with our finance team today!

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