Car Insurance Basics: Third Party Liability

When you're at fault in an accident, Third Party Liability covers claims made against you. Do you have enough coverage?
Categories: Personal Insurance
Nov 9th, 2017 | By: CapriCMW

Accidents happen. On average, 52,000 car accidents result in injuries or fatalities in British Columbia every year1.

It’s important to understand your coverage options to make sure you have the right coverage when you need it. Third Party Liability coverage protects you when you’re at fault in a crash and another motorist makes a claim against you.

In British Columbia, mandatory Basic Autoplan from ICBC covers up to $200,000 of their injury costs and vehicle damage. Often, liability claims can exceed $200,000, and if you don’t have enough coverage you could be on the hook for the difference.

That’s where optional Third Party Liability coverage comes in. Your Capri Insurance agent will ask you how you use your vehicle and will recommend the right amount of third party liability coverage.

Here’s an example


Helen only had Basic coverage on her vehicle. She thought it was a good way to save some money.  But when she caused a crash that hurt the driver of the other car, Amy, she learned the costs of a claim can add up. Amy was a young person with a well-paying job, and her injuries will prevent her from continuing with her career.  The costs for her lost income and future care could come to well over a million dollars.

The $200,000 liability limit on Helen’s Basic Autoplan won’t meet those costs, and she could be responsible for Amy’s future expenses. Stories like this are why most people choose to buy extra third party liability coverage: the peace of mind of knowing their personal assets won’t be at risk due to one unfortunate event2.

If you’re responsible for a crash, you might also be responsible for paying to repair the other vehicle or any injury settlement and expenses for the other driver and passengers. Additional Third Party Liability coverage protects you and your family from having to pay costs that go above what your Basic Autoplan covers.

If you’re at fault in an accident, do you have enough Third Party Liability coverage?

Find a CapriCMW office near you, or talk to an advisor to learn more about Extended Third Party Liability coverage.


1. 5-year average 2009-2013. Source: ICBC.
2. Source: ICBC

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