Drivers in Nova Scotia are required to have certain types of coverage in place to drive legally in the province. Legislators passed laws directing that third party liability coverage must be purchased. This type of insurance coverage pays for damages that you cause in an accident and covers medical bills and rehabilitation costs. It also pays for the cost of repairing the other driver’s vehicle.
Another type of mandatory coverage in Nova Scotia is for accident benefits. All drivers in the province must have financial protection to compensate them for their own medical expenses and lost wages following an accident.
Nova Scotia car insurance customers must also buy uninsured and underinsured motorist coverage. As the name implies, uninsured motorist coverage pays out when an accident occurs and the at-fault driver does not have insurance coverage. The driver’s insurance company will pay out on the claim and then attempt to collect the amount paid out from the at-fault driver, if possible.
Underinsured motorist coverage is a bit different. This policy provision is used to top up the at-fault driver’s car insurance coverage if it is not enough to fully pay for the damages caused in an accident. The at-fault driver’s insurance company will pay out first. Once the policy limit is reached, the underinsured driver coverage is used to make up the difference, up to its policy limit.