A 2008 RBC Insurance/Ipsos Reid survey showed that only 38 per cent of Canadians checked the impact of their coverage with their auto insurance provider when they drove to the United States.

According to Statistics Canada, same-day car travel to the U.S. increased six per cent over the past six months, up to 1.7 million trips. Whether you’re cross-border shopping or on a short business trip, you may not be aware of the serious financial risks associated with driving to the U.S. without adequate auto insurance.

If you have a car accident in the U.S. in which you’re at fault and injure several people, your liability insurance coverage could be used up quickly, even if you had $1 million in coverage. Liability insurance covers you when you are liable for causing personal injury or property damage and a claim is made against you.

In many U.S. jurisdictions, the ability to sue is not restricted to serious injuries and liability settlements can be extremely high.

Awards made to automobile victims are not limited by the level of liability coverage of the person at fault. Once the damages reach the insurable limit, an at-fault driver would be responsible for the amount of the award that is in excess of the limit.

Consult your insurance provider or visit www.rbcinsurance.com for more information.