insurance coverage?

[James H]

I always have the minimum $1million liability coverage with my car policies but have heard from a number of co-workers (some of whom are lawyers) recommending $2 million as basic coverage. What does everyone here have? Is it too excessive? I thought the Canadian system does not allow for outrageous claims as the US? (I don't drive to the US with my own car so doesn't really affect me)

[Tcoat]

Originally Posted by James H

I always have the minimum $1million liability coverage with my car policies but have heard from a number of co-workers (some of whom are lawyers) recommending $2 million as basic coverage. What does everyone here have? Is it too excessive? I thought the Canadian system does not allow for outrageous claims as the US? (I don't drive to the US with my own car so doesn't really affect me)

It doesn't. The maximum for most types of claim payouts is limited to $300K to $500K. For example the max payout for pain and suffering due to a serious, debilitating injury such as losing a leg is $300.000. I have no clue what advantage you would have going to $2 million.

[prod]

Lawsuits often specify $2M initially, but the eventual settlement (which you usually never see) is much less.

[Frost]

Originally Posted by Tcoat

It doesn't. The maximum for most types of claim payouts is limited to $300K to $500K. For example the max payout for pain and suffering due to a serious, debilitating injury such as losing a leg is $300.000. I have no clue what advantage you would have going to $2 million.

Got a sauce for that? Genuinely curious. Was not aware we had a cap.

[Lynxis]

Originally Posted by Frost

Got a sauce for that? Genuinely curious. Was not aware we had a cap.

http://otlablog.com/how-insurers-ded...-compensation/

[Lynxis]

Property damage claims don't have an upper limit from what I can find. It's extremely unlikely you'll ever be able to cause a million dollars in damage but it's within the realm of possibility which is why 2 million insurance coverage exists. Say you collide with a hypercar such that it was deemed total loss or end up going through some big office building and manage to take the whole thing down? It's not likely but there have been cases of it so that is why they include the larger liability coverage option.

[Muskoka800]

Have carried 2 million coverage for several years now.
Recommended by our close friend / agent.

[Tcoat]

Originally Posted by Lynxis

http://otlablog.com/how-insurers-ded...-compensation/

A little ummmm reactionary but given the source that is expected. The limits can vary from province to province but injury are capped at around $300K almost anyplace. Like the link says though not many get that much. The probability of causing $1 million in damage is very remote. To have a $2 million claim awarded is almost impossible. If worth it for the peace of mind fine but if it means a much higher premium it may not be worth the cost.

[mnuttall]

Originally Posted by Tcoat

A little ummmm reactionary but given the source that is expected. The limits can vary from province to province but injury are capped at around $300K almost anyplace. Like the link says though not many get that much. The probability of causing $1 million in damage is very remote. To have a $2 million claim awarded is almost impossible. If worth it for the peace of mind fine but if it means a much higher premium it may not be worth the cost.

The $300k cap, from what I recall, is just for "pain and suffering". Total payout covering actual past and predicted future losses can be greater than that.
I was in a bad bicycle vs truck crash (I managed to avoid actually being hit by the truck, but crashed head-first in a deep ditch at 55 km/hr) with significant injuries** that resulted in a lawsuit. I'm bound by a confidentiality agreement so can't share the actual payout, but for scale my lawyer's bill was six figures.

Whoever stated that you'll never see the settlement is not correct - unless the settlement goes beyond the amount of insurance the individual carries in which case collecting on the amount over the insurance coverage may be a challenge. When my lawsuit settled I had the cheque within a week or so.

**
-left collar bone broken in five pieces
-separated left shoulder
-torn left sc joint ligaments
-concussion
-two ruptured cervical discs
-severe left ulnar nerve damage
-burst fracture of T8
-four ruptured thoracic discs
-torn ligament in right wrist
-miscellaneous cuts/bruises