How much motor vehicle liability insurance do you need in Alberta? $200,000 is the mandatory minimum, and it may seem like a lot to some people, but it is never a recommended amount. If you want to protect yourself and your loved ones you need at least $2,000,000 of third party liability coverage.
Many US jurisdictions have mandatory liability insurance amounts that are less than $100,000. When you hear about big Jury Judgments in the US, more often than not they go unpaid. In Canada, Judgments are intended to put the victim back in a position they would have been, had the accident not occurred. This means there will not be a windfall, but in many cases where the income loss or cost of care is large, the damages can easily exceed $500,000 or $1 Million. If you only have $200,000 of third party liability coverage, you may never recover financially. You may be able to get rid of an Auto Judgment with Bankruptcy, but a claimant can have you Operators License suspended until the Judgment is paid, even if it is discharged in the Bankruptcy.
When we sue you, and you only have $200,000 of liability insurance coverage, you can be sure that you will have pay for many years to pay off a Judgment, because of your lack of liability insurance coverage. The extra coverage costs very little and protects your family and your assets. Talk to your insurance agent or broker to see how much it will cost you to protect yourself with more liability insurance. Don’t cheap out when it comes to your financial future!