There are over 8 million drivers in Ontario. Millions of us get into our cars and head out to work, run errands, or take in the scenery daily. None of us gets into our vehicles, anticipating that we’ll get into an accident. Yet, according to the Ministry of Transportation, 67,000 accidents occur annually in Ontario. That’s 185 accidents per day! If you have been in an at-fault accident, you may have questions about what that means. Will your insurance premiums go up? What about accident forgiveness? And how does an insurance company determine who’s at fault in an accident? We aim to answer all of your questions below.
What is an at-fault accident?
An at-fault accident is a car accident caused by a driver’s negligence. Legally, negligence is failing to take reasonable care to prevent harm to another person. This could mean you could not do something, such as stopping at a red light, or you did something careless, like driving while fatigued. In Ontario, your insurance company will handle the payout of your claim. In a traditional at-fault system, the driver found at fault will be responsible for paying for the damages to both drivers! Resolving and settling the damages can take months.
How does an insurance company determine fault?
Each insurance company will investigate the accident to determine fault. The Fault Determination Rules your insurer will use are province-wide, and all insurance companies must use them. The province’s Insurance Act lays out these regulations. If you are involved in an accident, you can be found responsible anywhere from zero fault to 100% at fault.
Fault categories
- Cars traveling in the same direction and lane
- Vehicles traveling in the same direction in adjacent lanes
- When traveling in opposite directions
- Cars meeting at an intersection
- Events that occur in a parking lot
- Other circumstances that don’t fit the above categories
It also lists the rules of what happens if a driver is charged with a driving offense by police, such as a DUI or high-risk driving. Based on that document, insurers determine who was at fault for the car accident. If, as the driver, you are at least 25% responsible for the accident, you will likely see your auto insurance rates change. Here’s our complete list of at-fault accidents and the different types.
If the police charge me, will I automatically be at fault for the accident?
No. Being charged by the police with a driving offense does not automatically mean you are at fault for the accident. Conversely, the police not charging you with a driving offense doesn’t mean you’re off the hook, either. If the brakes on your car fail and you rear-end another vehicle, you will be at fault based on the Fault Determination Rules. But you will probably not be charged with any driving offense.
Will my insurer cover me if I am at fault for an accident?
Yes. Ontario has a ‘no-fault’ auto insurance system. Ontario’s No-Fault system allows you to receive compensation for your losses quickly. The No-Fault Insurance was created to simplify the claims process because your insurer deals with your claim. Regardless of fault, you are entitled to compensation to cover your losses.
Can I appeal an at-fault accident with my insurance company?
You can appeal an at-fault decision with your insurance company. This is one of the reasons why it is essential to document every aspect of an accident. If you feel your insurer’s decision is wrong, you can appeal it. Dashboard cameras are gaining popularity each year. To appeal, you first need to find out what happened to you being at fault. Next, present any additional information you have that may clarify things. Every insurance company has a system in place. Often, a third party will make the final decision. If you want more information about what your insurer needs to know after an accident, please click here.
How does an at-fault accident impact your auto insurance?
If you are found to be more than 0% at-fault for a car accident, you will have an at-fault accident listed on your record. Your insurance premiums will be affected if you are more than 25% at-fault.
Common ways that your insurance company may react to an at-fault accident
- For a first-time at-fault accident, your premium may not change if you have been a claim- and conviction-free driver for six or more years. If there is a change, it will likely be small. The first time you have an at-fault accident, it goes on your record. It will take six years of claim-free and conviction-free driving to clear it completely.
- For a second at-fault accident within five years, your insurance premiums will likely increase. You may be a high-risk driver, depending on the severity and circumstances of the accidents on your record. You must drive claim-free for six years to clear this from your record.
Three or more at-fault accidents will guarantee a high-risk driver label on your record. Your auto insurance rates will increase, and finding cheap insurance will be hard.
What happens if I am labelled a high-risk driver?
With two or more at-fault accidents on your record, you will likely be marked as a high-risk driver. Fewer insurers offer high-risk insurance than general providers. As such, premiums are higher and cheaper, and high-risk insurance is more complicated. The best way to access affordable high-risk car insurance is to leverage our isure brokers’ expertise. We compare insurance companies’ rates in Ontario to find you the best policy for the best price.
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