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Why Armour is Switching Our Customers to $2M Liability

Feb 27, 2019 8:51:18 AM


Insurance companies and brokers in Alberta have been recommending $1M in third party liability coverage as a standard since the early 2000's. Since then the number of claims with payouts exceeding this has increased substantially. In 2018 25 Albertan's had auto insurance claims where a $1M liability policy was not enough to cover the damages. In cases like this the driver/vehicle owner has to cover the remainder themselves.

This doesn't apply just to auto insurance. We've seen similar situations arise on property claims as well. With liability claim settlements on the rise overall, it is becoming more and more common that the settlement surpasses the policy limit of $1 million, leaving policy holders responsible for paying the excess. More often now we are seeing policy holders owe 100's of thousands of dollars out of their own pocket to cover the costs of these claims.

We never want to see our customers in a situation like this and for that reason Armour Insurance is moving all policies to a standard $2M Third Party Liability. In many cases this only increases premiums by $10's of dollars per year, and when considering what could happen, we believe that this is the right decision for our customers.

Watch our Webinar: Liability Insurance, How Much is Enough

Liability Insurance - How Much is Enough - Webinar Recording - higher br

What is Liability Insurance

Third Party Liability Insurance is a form of insurance coverage that pays for damage if you've injured someone else or damaged their property. There are different types of Liability coverage including Auto, Personal, Commercial and Umbrella.

How it Works

  • Liability Insurance is purchased up to a certain limit.
  • Damage or injury is caused by the policy holder.
  • Complaintant files a suit or claim.
  • The liability policy pays up to its limit (if negligence is proved).

When involved in a liability claim of any sort, the last thing you want to be worried about is if you have enough protection to cover you or even worse, if the other party has enough to cover your damages. At the end of the day, we want to get your life back to, as close to the same state it was in prior to the accident as possible. These days, this means increased liability coverage for our customers. The potential hazards of not having this coverage make this a no-brainer.

Note: While Armour is in the process of moving our policies to $2M liability limits we cannot guarantee when this will happen or that it is possible with all of our policy holders. To check your coverage check your Armour Mobile app or refer to the latest insurance documents sent to you by your insurance provider.

Rob Stevenson

Written by Rob Stevenson


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