If you own and operate an automobile, you are required by law to insure it. The mandatory coverage Newfoundland and Labrador is comprised of:
If you are responsible for an accident causing injuries or fatalities, or if your vehicle damages someone else’s property, you may be legally responsible.
You lose control of your vehicle on ice and cross the center line striking a van head on.
Role of Third-Party Liability coverage
Your insurer will defend you in case of a civil law suit and will make any payment required by law on your behalf, up to the amount specified in your policy. Minimum coverage for Third-Party Liability is $200,000, but most drivers choose $1 million.
What is it?
This section of your insurance policy covers you in the event of an accident with an uninsured driver or unidentified vehicle causing injury to you or damage to your vehicle.
Role of the Uninsured Automobile and Unidentified Automobile coverage
The role of this coverage is to enable you, under certain circumstances, to collect compensation directly from your insurer when a third party carries no insurance or cannot be identified.
Without this coverage, you would be in a weaker position to make claims in the event of an accident with another driver who does not carry insurance or is not identified.
Note: Damage to the vehicle caused by a hit-and-run is not covered under this section.
While Third-Party Liability and Uninsured and Unidentified Automobile coverage are mandatory in Newfoundland and Labrador, many people opt to add Accident Benefits to their basic coverage.
In case of discrepancy between the information provided on this website and your insurance policy, your insurance policy prevails. Remember, the exclusions and limitations specified in your policy apply in all circumstances.
The information and examples provided in this section are intended as general information only. This does not constitute legal or insurance advice, nor does it pertain to determination of fault. In all cases, you should speak to an insurance advisor before acting. Your insurance policy contains limitations and restrictions which vary by province and may affect your coverage and/or determine whether or not benefits will be payable.