In Nova Scotia, it is mandatory to have auto insurance for all vehicles. The different types of mandatory insurance coverage that all drivers need are listed below.
Third-Party Liability. The minimum is $500,000. However, most choose to take out million-dollar policies. With this coverage, the insurer defends the insured in civil litigation and pays out claims up to the policy limitations. A typical scenario could be losing control of the car on a rain-slicked road and crashing head-on into another car, causing injuries.
Direct Compensation involving property damage. When you get in a wreck in Nova Scotia and the fault is not entirely yours (but at least one other motorist involved in the collision has insurance with a Canadian or American company), this coverage may take effect.
Repairs to your car and the contents inside will be covered, along with compensation for loss of the use of your car or truck if you are not determined to be at fault. In cases where you and another driver are determined to be equally at fault, your own insurer will indemnify you.
A deductible may be applied before a payout is made.
Uninsured/Unidentified Automobile Coverage. If you are involved in a wreck with a driver without insurance or an unknown vehicle, this will cover your damages up to your policy limits. Hit-and-run incidents are excluded.
Mandatory Accident Benefits. Some accidents inevitably result in injuries. This insurance covers bodily injuries no matter who is assigned fault. Some potential expenses to be covered may include the following: rehab costs, lost time from work, medical expenses, death benefits and funeral expenses.
Policy limitations and exclusions may apply in all of the aforementioned examples.
If you experience problems with a claim against your own insurer, you may want to seek legal advice.
Source: TD Insurance, “Car insurance – Nova Scotia Mandatory Coverage,” accessed May 1, 2015