Compare the best third-party liability auto insurance quotes for free.

On average, Canadians save hundreds of dollars per year by comparing quotes with us.

Get quotes from 50+ Canadian providers in 3 minutes.

Get quotes from 50+ Canadian providers in 3 minutes.

25,061 Canadians

have compared rates and saved money over the last 24 hours

What our users say:

Excellent
Based on 505 reviews
September 22
Was pleasantly surprised by the prompt…
Was pleasantly surprised by the prompt response to my enquiry online. Hope it's ...
Mishu K
August 17
Insurance quote
Within a few hours I received a call from a broker who explained the type of ins...
Louise Olivier
August 5
Received a call before I was even…
Received a call before I was even finished submitting information. Super fast se...
Robert Chiasson
August 4
Insurance Premiums
I got all the information I needed with the lowest Auto and Home insurance premi...
joseph almeida
August 4
A click and I was a few minutes away my 50% savings!!
A click and few answers to questions and I got a quote almost half the price of ...
Laurentia
August 4
Great service!
Great service!
Linda RitaOlivier
August 3
They respond very quickly
They respond very quickly. They are very understandable. The representative I sp...
Nuwara47
August 3
Excellent
They help and did a great job assisting in new insurance
Serena MarieCasto
August 2
The agent name, Justin Farr
The agent name, Justin F. was very helpful, kind, and patient. I will surely get...
JessicaMercado
August 2
Quick efficient and very helpful 👌
Quick efficient and very helpful 👌
Khalilulla Razzaque
August 2
dick
Web page was quick and easy to use
Richard
August 1
Great Customer Service & easy to get a…
Great Customer Service & easy to get a quote in minutes. Car Insurance premium a...
Nadeem Sheikh
July 30
Good experience was pretty quick
Good experience was pretty quick
Grant W.Murray
July 29
The agent was friendly
The agent was friendly, helpful and polite. All in all a good experience.
KaneezAla
July 29
Extremely simple
Extremely simple, and fast process.
JaniceGiannitti
July 26
excellent
excellent, professional service
SabinBaidoc
July 23
Very kind and helpful
Very kind and helpful
April Shannon
July 22
Easy to find easy to use website which…
Easy to find easy to use website which provided me with options.
Randall McLellan
July 22
Excellent service
Excellent service
Sven Zorz
July 21
They were great
They were great
ChristinaLain
July 21
Excellent pricing
Excellent pricing
pankaj joshi

How comparing auto insurance quotes works. Hint: it’s free!

Compare

Next, we’ll show you quotes from 50+ Canadian providers. It’s free, with no commitment.

Save

When you find the best quote, secure your rate by talking to a licensed broker or agent.

Get the best rates on third-party liability car insurance.

Driving is inherently risky. Even if you’re a careful driver, you can never rule out the possibility you’ll be involved in an accident. That’s why you need to be prepared for the off-chance you cause an accident that results in property damage or injuries. Third-party liability car insurance prevents you from paying for the damage out-of-pocket and is the only type of car insurance that’s mandatory across Canada.

Front view of a car. Illustration.

See how our customers save big on auto insurance.

CustomerLocationVehicleLowest rateAverage rateSaved
Quote from October 04, 2022
Customer
Male, 55 years old
Location
ontario
Vehicle
2012 HONDA CIVIC LX 4DR
Lowest Rate
$508/mth
$6,096/yr
Average Rate
$752/mth
$9,025/yr
Saved
$244/mth
32.45%
Quote from October 04, 2022
Customer
Male, 19 years old
Location
ontario
Vehicle
2011 NISSAN SENTRA 2.0 SL 4DR
Lowest Rate
$346/mth
$4,154/yr
Average Rate
$638/mth
$7,651/yr
Saved
$291/mth
45.71%

Your third-party liability auto insurance questions, answered.

What is third party liability insurance?

Third party liability insurance protects you in the event that you’re sued by someone for causing bodily injury or damage to their property in a collision.

What does third-party insurance cover?

In Canada, third-party liability insurance kicks in if you’re found responsible for damage to a person’s property, injuries, or death. To get even more granular, third-party liability coverage includes:

  • The cost of repairs to any vehicles damaged in an accident for which you’re determined to be at fault.
  • Any repairs to property you damaged during the accident.
  • Any associated medical costs because of the accident.
  • Lawsuits and legal fees.
  • Damages to any injured parties as a result of legal judgements against you.
  • You cause death during an accident and are sued by the family.

If you own a car, the law states you must purchase third-party car insurance. This is the minimum amount of insurance you’re allowed to have if you own a vehicle in Canada.

But not everyone owns a car. Some people rely on car rentals. How does third party insurance work then? Well, if you’re using a rental car, the third-party liability insurance minimum coverage that comes with the rental is $200,000. If you want any more than that, you’ll have to purchase extra.

What else is covered under third-party liability auto insurance?

You may think you’ll only need to use your third-party liability insurance if you’re involved in a car accident — but it actually offers coverage in many other scenarios, including if you:

  • Knock over a pole or part of your neighbour’s fence while reversing.
  • Hit a cyclist or pedestrian and you get sued for damages including medical fees.
  • Lose control of your car in bad weather, hit something and damage property.
  • Get sued by a passenger in your car.

How does third party-liability insurance work?

Third party insurance kicks in when someone sues you for bodily injury or property damage. But what you might not know is that it actually offers coverage in many other scenarios, including if you:

  • Knock over a pole or part of your neighbour’s fence while reversing.
  • Hit a cyclist or pedestrian and you get sued for damages including medical fees.
  • Lose control of your car in bad weather, hit something and damage someone’s property.
  • Get sued by a passenger in your car.

Does third party liability insurance cover damage to the other car?

The answer to this depends on which province you live in.

In provinces that use a tort-based auto insurance system, where you only receive a certain amount of compensation from your own insurance company in the event of a collision and have to sue the other driver’s insurance company for additional compensation, your third party liability insurance would kick in and cover the cost of the damage to the other driver’s car, as well as any bodily injuries.

In no-fault provinces, such as Quebec and Ontario, where you deal only with your own insurance company, not the other driver’s, your collision coverage would kick in to cover the damage done to your own car. And the other driver’s accident benefits coverage would cover their injuries, and their direct compensation-property damage (DCPD) would cover their vehicle damage.

What’s the difference between third party insurance vs comprehensive?

Comprehensive auto insurance coverage protects your vehicle against damage not caused by a collision. Think hail, vandalism and theft, or a tree falling onto your car during a storm. If you own your car, then comprehensive coverage is optional. If you lease or finance your car, then comprehensive coverage is mandatory.

Third party liability insurance, on the other hand, protects you in the event that you’re sued by someone for causing bodily injury or damage to their property in a collision.

How much third-party liability auto insurance do I need?

The minimum recommended amount is $200,000 but you may want to consider buying a larger policy if you know you’re at a greater risk for damage and injury, and especially if any of the following apply to you:

  • You carpool and frequently drive with others in the vehicle.
  • You drive your vehicle for work.
  • You drive in the United States frequently.
  • You drive in a higher risk location (more traffic, cars, higher accident rates).
  • Damages to property and person, plus repair costs, medical and legal fees will add up and can end up costing way more than $200,000.

In other words, if you only have coverage for $200,000 and you’re sued for $1-million, you’ll have to pay the remaining $800,000 out of pocket.

Insurance experts recommend buying a policy worth $500,000 to $1-million.

How much does third-party liability car insurance cost?

It’s tricky to pin down the average cost of third-party liability car insurance.

The price you pay for third-party insurance depends on the make and model of your car, the province you live in, and the cash value of your auto insurance policy.

It’s in your best interest to compare the cost of third party car insurance from multiple providers before you make a decision. You can search for third party insurance quotes online to see how much you could pay. This is the easiest and cheapest way to secure third party car insurance.

Where can I buy third-party auto insurance in my province?

Third-party liability auto insurance is mandatory for drivers in Canada. But because auto insurance isn’t administered the same way in each province, how to get third party insurance varies based on where you’re driving your car.

In some provinces, the government administers this product, while in others, third-party car insurance is provided by insurance companies.

British Columbia

In British Columbia, most registered vehicles must be covered by the Insurance Corporation of British Columbia (ICBC), which was formed by the NDP in 1973 as a non-profit provincial crown corporation.

The coverage provided by ICBC is the basic level of coverage with $200,000 in third-party liability insurance.

Non-mandatory additional coverages — like fire, theft, and collision coverage — are available from private insurers. If you own a vehicle that is valued at more than $150,000, ICBC won’t provide coverage.

Private auto insurance providers in British Columbia:

  • Intact Insurance
  • Reliance Insurance
  • Belair Direct
  • Desjardins Insurance

Saskatchewan

Saskatchewan uses a system similar to B.C.’s.

When you register a vehicle with Saskatchewan’s driver licensing and vehicle registration, you pay a flat fee and that provides a basic insurance package on your plates. Insurance is provided by Saskatchewan Government Insurance (SGI).

Third-party liability insurance in Saskatchewan covers damages to your vehicle caused by another vehicle, property or injury to persons, but the benefit is quite small: less than $1,000.

Drivers are recommended to buy extra coverage from private insurers.

Private auto insurance providers in Saskatchewan:

  • Aviva
  • AGI Insurance
  • The Co-operators

Manitoba

Manitoba offers basic third-party liability insurance with coverage up to $200,000 via Manitoba Public Insurance.

Alberta

Unlike B.C., Saskatchewan and Manitoba, Alberta drivers purchase their insurance from private providers.

Private auto insurance providers in Alberta:

  • Aviva Insurance
  • Wawanesa Mutual Insurance
  • Desjardins Insurance
  • Security National Insurance Company
  • TD Insurance

Ontario

If you’re a licensed Ontario driver, you have to buy third-party liability auto insurance from private insurance companies.

Private auto insurance providers in Ontario:

  • The Co-operators

How can I ensure I get the best price for third party car insurance?

The smartest way to go about it is to compare prices for third party car insurance online. Our auto insurance quoter allows you to compare third party insurance quotes from 50+ Canadian insurance providers.

Lisa Coxon

Lisa Coxon

About the Author

Lisa is an Editor and Writer for LowestRates.ca. Her work has appeared in Reader’s Digest, Toronto Life, Canadian Living and TVO. As a child, she diligently hoarded the $50 bills that fell out of her Christmas cards. Adult Lisa is working hard to resurrect those stockpiling tendencies.

Read More

Auto insurance news

Read More Like This