Are you new to driving and live in a Canadian province? If you have not invested in auto insurance, it is in your best interest to at least get liability coverage to make sure you are not breaking the law. Find out in this article what you should know about liability auto insurance and what might happen if you continue driving without coverage.
Why Get Third Party Liability Insurance Coverage?
Liability auto insurance is the minimum amount of coverage that you should have as a driver. The coverage helps other drivers financially if you get into an accident that is your fault. The driver and his or her passengers will have the right to request compensation from your insurance company for treating injuries. The amount that each victim is compensated will depend on your insurance policy.
The coverage also extends to help auto accident victims with fixing damage to their vehicle. Rather than taking to you to court, the victims will be able to get money from the insurance company to either repair or replace their vehicle. Financial help from an auto insurance company can help you and anyone that you hit to avoid getting into a financial bind.
What are the Penalties for Not Having Auto Insurance Coverage?
If you happen to get pulled over by a police officer and can't prove that you have auto insurance, you can get in trouble with the law. The penalty will depend on the province you reside in and how many times you have been caught without coverage in the past. Basically, you could be fined, placed in jail, or both.
In the worst-case scenario, you can get your driving privileges suspended permanently for driving without auto insurance coverage. However, license suspension is usually the result of getting fined or jailed multiple times for not having auto insurance. Keep in mind that getting penalized can also have an effect on how much coverage costs. Your rate will get higher each time that you are penalized for a traffic incident.
Before you decide to get behind the wheel, make sure you have third party liability insurance to protect other drivers in a collision. The coverage will also protect you from legal trouble and higher insurance rates. Get in touch with an auto insurance company in your province to get the coverage that you need to drive without breaking the law! This will make your experience as a new driver much less stressful.Share