Driving on Dangerous Roads? The Importance of Liability Coverage

August 21, 2015 - Shopping for a new car is exciting, but before you can hit the open road you'll need to decide on the type of insurance. Choosing the right type of insurance can be confusing and intimidating, but it doesn't have to be. Shop Insurance Canada helps you find the best insurance coverage by shopping from 15 insurers. We do all the hard work for you. We want our customers to be educated. That's why we've broken insurance coverage down. Here is an explanation of the three main types of car insurance policies. If you're driving on dangerous roads, liability coverage is a must-have.

Collision Coverage - Collision coverage offers financial compensation for damage done to your vehicle when you're involved in an accident or collision. Collisions typically include another vehicle , the ground or an object like a guard rail on the highway. Collision coverage can be costly; your premiums depend on the make and model of vehicle, your driving record and a laundry list of other factors.

Comprehensive Coverage - While collision covers you for damage while you're driving your vehicle, comprehensive coverage provides financial compensation for damage not related to operating your vehicle or your actions behind the wheel. Comprehensive typically includes civil disobedience, falling objects, fire, natural disasters, riots, theft, vandalism and more. The premiums for comprehensive coverage are typically pretty reasonable compared to collision coverage.

Liability Coverage - A third type of auto insurance coverage is liability. Drivers often make the mistake of overlooking liability coverage. Liability coverage protects you if you are involved in an accident and held legally responsible for someone else's injuries, damage to property or someone else's vehicle. Basic auto insurance plans typically provide $200,000 of third party liability coverage, but that often isn't enough. You are responsible for paying any damages in excess of this amount out of pocket.

AutoBlog.com recently did a blog post on the Ten most dangerous roads in the world. Although no roads in Canada made the list, if you'll be driving on dangerous road, comprehensive and collision coverage alone are not enough. The Cabot Trail in Nova Scotia is one of the most breathtaking drives in the world – it's also one of Canada's most dangerous roads. Dangerous roads aren't just out in the country. Each year CAA releases its list of the worst roads in Canada. Two of the worst roads are in Toronto: Dufferin Street and Bayview Avenue. If you'll be driving on these roads, upping your liability coverage is a good idea. You could be one pot hole away from causing damage to your vehicle or someone else's.

Whether or not you're found at fault in a vehicle collision, liability coverage protects you. Drivers often choose to top up their third party liability to $1 million or higher. You can even purchase additional coverage like extended third party liability. This protects you in case you are sued from damage caused by a crash.

Head over to Shop Insurance Canada to take a look at informative resources on liability coverage and other types of insurance.