Dealing with an accident can be a very stressful and traumatic experience. There are property or personal injuries when you are involved in a car accident. As a result, you may be required to file a claim. Your insurance broker can help you ensure the best possible outcome, but first, we can talk about the procedure for filing an auto insurance claim in Ontario.
Read your insurance policy.
As the law stipulates, purchasing automobile insurance for your vehicle in Canada is mandatory. You may increase basic coverage for better financial protection by taking on additional liability coverage. It’s a good idea to sit down and thoroughly read your Ontario Automobile Policy (OAP 1). It details your insurance coverage, rights, and responsibilities under the contract. If you do not have a copy of the OAP 1, ask your insurance agent, broker, or claims adjuster for a copy. They will be able to walk you through the document so that you can understand your coverage.
Let your isure broker know you’d like to file an auto insurance claim
It is best to call your insurance broker immediately after the accident. Let them know what happened and ask for next steps as it is the role of your broker to help you. Please submit a report within seven days, preferably within 24 hours. If this isn’t done within a reasonable time, your insurance company may not honor your claim.
Does the accident need to be reported to the police?
By law, a collision must be reported to the police. The 9-1-1 dispatch operator will assess the details and dispatch the police if:
- There are injuries
- The damage to any of the vehicles exceeds $2,000
- You suspect that any of the other drivers involved may be driving under the influence of drugs or alcohol, in which case they would be guilty of a Criminal Code offence.
It is considered a minor accident if none of the above criteria apply. For minor accidents, call the nearest Collision Reporting Centre in your area and have your vehicle assessed.
Please get in touch with your isure broker and/or insurance company immediately after the accident or incident requiring a claim. You can usually file a claim online, over the phone, or by contacting your insurance broker.
What information does your insurer require?
Once you report your claim, your adjuster will contact you once assigned to your file. Your claims adjuster will determine the extent to which your insurance policy covers the claim, explain the coverages within your policy, and help guide you through the entire claims process.
What is ‘Proof of Loss’?
To support your auto insurance claim, you may also need to complete a claim form, also known as a “Proof of Loss” form (a sworn statement in support of your claim). You should file a proof of loss within 90 days of the collision, which will most likely include:
- Insurance information: The policy owner’s name and policy number.
- Information on your car: Include your vehicle’s year, make, and model.
- Accident details: Provide all the information you have written down and/or can remember. Be sure to have the exact date, time, and location of the accident. Provide the number of passengers and the extent of any injuries. Notify your broker if you have photographs of the accident scene.
- Collect other driver’s information at the scene: Present their driver’s licence, insurance, and plate information.
- Reporting officer information: Have the name and badge of the reporting officer if one attends the scene of the accident.
What happens if you don’t report a car accident?
Remember, not filing a claim or delaying filing a claim within a reasonable timeframe may affect the claim outcome overall.
Just to let you know, the other party involved in the accident may report the accident later on and also file a claim against you. This could affect your insurance premiums once the car accident shows up on your driving records, causing them to increase. Not informing your insurance broker of the accident will also be a ‘non-disclosure’, which may affect your policy renewal. Therefore, it’s recommended that you file an auto insurance claim in Ontario to get the best result for your claim.
What happens after you file an auto insurance claim?
Once you file the claim with your insurance company, the claim is processed, leading to an eventual settlement. How your insurance company investigates the claim varies depending on the following factors:
- The nature and extent of the accident
- The accident policy of your insurance company
- Whether the accident involves injuries, property damage, or both.
Please keep an eye on the claim’s progress and make sure that all necessary steps are taken.
Will my insurance go up after a car accident?
You can generally expect your premiums to go up if you are found at fault. There are exceptions, however, including the fact that if you have accident forgiveness on your policy. This means they typically waive a first-time accident. Someone is always ‘at fault’ – fully or partially- whenever a collision occurs. Assessing at-fault accidents helps insurance companies determine accident coverage rates for each driver, which helps keep your premiums lower when you renew your policy. Insurance companies use At-Fault Accident Determination Rules to determine who bears fault and how much and to assess all accidents fairly.
No-fault insurance means you’ll deal with your car insurance company for claims in Ontario. Your report, along with the police report, are critical components to your insurer assigning fault. Know that you can be found partially at fault, meaning anywhere from 0% to 100% at fault in a collision.
If you are a careful driver and observe the laws of the road, you will be less likely to have an accident, maintain lower premiums, and have a successful claim settlement. However, driving in an illegal and/or unsafe manner is one of the main reasons your insurer may deny your auto insurance claim. In some instances, you risk a policy cancellation as well. If it’s determined that you were violating the law when the damage was done to your vehicle, you will likely face an increase in your premium costs. By driving carefully, you can avoid the adverse effects of claims while keeping rates affordable.
Will my insurance cover a rental vehicle?
It depends. It is best to ask your isure broker if you have coverage before renting a replacement vehicle. If the other driver’s insurance company accepts complete fault for the accident, you will be entitled to a replacement vehicle while yours is being repaired (without paying out-of-pocket).
However, if you are found to be wholly or partially at fault for the accident and did not purchase optional Loss of Use (Transportation Replacement) coverage, the cost of a rental vehicle may not be fully covered. Please speak to your isure broker regarding your specific situation; they should be able to outline coverages that are available to you, as well as any deductibles that may apply.
When shouldn’t I file an auto insurance claim?
Making a claim is an important decision. It can affect your record and car insurance rates and financially impact you. Starting a claim should be a priority if your vehicle has significant damage. But, it’s a minor car accident or more negligible damage when you should think twice.
Here are some situations where you may not want to file:
- The damage may only be slightly more than your car insurance deductible.
- You have the funds to pay for the damage.
- You only cause minor damage.
- You caused the damage yourself. For example, you backed into a tree on your driveway.
In these situations, it may not make sense financially to file a claim because it could go on your record. Increasing rates could cost you more money in the long term than paying for the repairs yourself.
Repair your vehicle or declare it a total loss.
When you claim damages to your vehicle, your insurance company will pay the lower of the following:
- The cost to repair the loss or damage.
- The “S” of your vehicle at the time of damage refers to the actual cash value (ACV) of your vehicle or the fair market value of the car at the time of the damage or loss and is the basis for determining the payout or repair cost coverage from insurance
- Note: Some car owners have had work done on their vehicles to increase their appearance and/or performance. Tell your claims adjuster if you’ve recently completed work on your car that would increase its actual cash value. They ask you to provide receipts to help the insurance company determine an adjusted cash settlement.
Remember: Your insurance company takes the deductible specified on your Certificate of Automobile Insurance into account. When damaged, they will not pay more to repair your vehicle than its actual cash value (minus the deductible). If repairs to your car cost more than the actual cash value, it wouldn’t make financial sense for insurers to pay for repairs and would be considered a total loss.
Insurance companies employ claims adjusters to assess your vehicle. Once the adjuster writes off the automobile as a total loss, it is labeled salvage. The make, model, mileage, and conditions determine the cash value. Next, it will be auctioned off for its salvage value. In most cases, it will be your responsibility to purchase a replacement vehicle.
If you have been in an accident and wish to submit a claim, remember you are not alone. Your isure broker can help walk you through your policy coverage to resolve your claim and get you back on the road as soon as possible. For more information, visit our website or contact an isure broker today.
Filing an auto claim can seem complicated. We've answered some Read more
Have you ever wondered just what exactly goes into calculating Read more
