1. Third-Party Liability Insurance (TPL):
Liability insurance is the insurance type that is mandatory for all motorists in Canada. Most of the provinces in Canada require a minimum of $200,00 in liability coverage except for Quebec and Nova Scotia. Quebec requires only $50,000 minimum in liability coverage and Nova Scotia requires a minimum of $500,000 in liability coverage. Liability insurance protects people and objects involved in collisions and motor vehicle accidents caused by the driver of the vehicle. This includes coverage for; medical expenses including injuries, death, and property damage. Liability insurance also protects the driver from any financial losses due to injury from an accident, including medical bills or loss of income from the injury known as accident benefits. Accident benefits may be claimed whether the accident is caused by another driver or the driver with the liability insurance is proven to be at fault for causing the accident.