Auto insurance generally covers your liability for bodily injury and property damage to others, and your costs in case of physical damage to your own car. Specifically, consumers may purchase:

• Bodily Injury Liability - This is third party coverage. This coverage pays the other person (the third party) if you cause an accident and are liable for the personal injuries to the other person.
• Property Damage Liability - This is third party coverage. This coverage pays the other person (the third party) for the cost to repair or replace the other person's vehicle if you cause an accident and are liable.

In auto insurance, there is third party coverage. Third party coverage is for your responsibility to pay for injury caused to other people. The coverage (and exclusions) is set forth in a contract with an insurance company. In exchange for the payment of a premium, the insurance company promises to provide compensation in the event of certain occurrences. There are many coverage options available from insurance companies and sometimes options that are available from one company are not available from another company, in addition to a variety of costs for comparable coverage from different insurance companies.

By purchasing auto insurance, you're not just protecting yourself against the cost of repairing or replacing your vehicle if it is damaged or stolen. You're also protecting your financial future. If you are involved in an accident that causes serious injury to someone else, the courts could order you to pay a substantial amount of money in damages. That's why every auto insurance policy includes protection against Third Party Coverage. The only decision you have to make is how much protection you need, for both your vehicle and yourself.

All State provinces and territories require drivers to purchase a minimum amount of auto insurance coverage before they can operate a motor vehicle. This insurance may be available under a provincial plan or you may be required to purchase it from an independent insurance company. Third party coverage insurance covers you if your vehicle injures someone else or damages their property and you are held legally liable. However, your provincial minimum is unlikely to be enough if you are involved in an accident that leads to a court case. Should a claim against you be more than your level of coverage, you could be held personally responsible for the difference. That's why most drivers purchase more than the minimum coverage required by law.