Problem With The Legal Minimum Liability Insurance Coverage

A large portion of drivers who are navigating roads on the daily, do not have access to proper liability insurance coverage. This is as a result of the change in insurance laws which led to a severe cut in benefits in exchange for offering additional coverage for drivers through purchasing of packages.

The biggest problem of this change is that, many motorists are not even aware of it which led to only a tiny percentage of drivers purchasing an extended liability insurance, and even smaller percentage than that purchasing additional medical coverage. With so many under-protected drivers navigating the road, recent years have proven to be quite harsh for the ones among them who have been involved in collisions.

Predicament of Ontario Auto Insurance

While Alberta has as many as ten million drivers navigating its roads, it still upholds its position as the province with the lowest accident and fatality rates in all of Canada. However, it also holds the top spot for highest premiums which, according to the Ministry of Finance, is due to the basic structure of the system. Each driver is obligated to have a two-part auto insurance: one-part statutory accident benefits, and one-part tort or bodily injury.

Statutory Accident Benefits provide you with an entitlement to compensation, regardless of whether you had fault in causing the accident or not.

Tort/Bodily Injury provides coverage in cases in which you are found to be guilty of causing the accident which left somebody injured, and that injured person then proceeds to take court action in order to seek compensation.

This two-part insurance coverage system is mandated by our government; however, private insurance companies are still free to provide policies for their clients as they please. This is unlike other provinces, in which government mandated programs are the only ones available but then coverage is only provided by government agencies, or in part by the private sector and government. If you are unaware about the intricacies of law, it is important to talk with a lawyer. They will explain the intricacies and how legal representation can help you.

The Impact A Changed System Has On Drivers

Due to recent changes in laws, the maximum benefits for injured parties in motor vehicle accidents have been significantly reduced. Prior to the changes, the maximum for medical and rehabilitation expenses was set at $100,000, but as of now, the maximum for minor injuries is set at $3,500, and the maximum for severe injuries at a mere $50,000. It is important to contact a personal injury lawyer in Cochrane to help you get the right amount of compensation.