Frequently Asked Questions:
Q: I lent my car to a friend who had an accident. Will that affect my premium?
A: As the owner of the vehicle, you are responsible for anyone who drives your vehicle with your permission. If your friend has an at-fault accident while driving your vehicle, the accident will become part of your driving record and will affect your insurance premium.
Please refer to Understanding Automobile Insurance for additional information.
Q: How does an at-fault accident affect my insurance premium?
A: In many cases, if you have your first at-fault accident after six or more years of claims-free and conviction-free driving, your premium may not change or may increase by a relatively small amount. Some insurance companies offer endorsements to drivers that will allow them to maintain their driving record or premium after a first at-fault accident. Most companies will change your driving record to reflect the accident and increase your premium by a small amount. You will need to regain your six years of accident-free driving before you return to lower premiums.
If this is your second at-fault accident in the last six years, you can expect your premiums to increase quite significantly.
If you have any convictions or cancellations of a policy, in addition to an at-fault accident, or are an inexperienced driver with an at-fault accident, you may be considered to be a high-risk driver and be placed with an insurer that specializes in these types of risks.
When you are shopping around for insurance, you should always ask the broker or agent how your premiums will be affected after an at-fault accident.
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Q: The police officer who attended the accident scene told me I was not at-fault in the accident. Why did my insurance company tell me that I am at-fault?
A: A police officer may say that neither of the drivers were at-fault in a situation such as a vehicle being unable to stop on an icy road and rear-ending another vehicle. Such a comment relates to the laying of charges and should not be taken as an opinion about how the Fault Determination Rules apply to an auto insurance claim. In a case like this, the insurer would apply the rule stating that a vehicle which rear-ends another is at-fault.
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Q: What can I do if I disagree with my company in fault assessment?
A: If you disagree with your company in the assessment of fault in an accident, you should contact the Consumer Complaint Officer at your insurance company and request that the assessment be reviewed by a senior representative of the company. If you continue to disagree, you may choose to go to court.
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Q: How does my company determine whether I am at fault in an accident?
A: In Ontario, companies are required to use Regulation 668, Fault Determination Rules. These rules help insurance companies deal with vehicle damage claims quickly and economically.
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Q: What is no-fault insurance?
A: No-fault insurance means that if you are injured or your car is damaged in an accident, then you deal with your own insurance company, regardless of who is at fault. You don’t have to go after the at-fault driver for vehicle damage reports and statutory accident benefits compensation.
See no-fault/at fault for more information.
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Q: Does my company have to renew my automobile insurance policy?
A: In Ontario, insurance companies must file, with the Financial Services Commission of Ontario, the conditions under which they will not renew a contract. If an insurance company decides not to renew your policy, it must notify you in writing at least 30 days before the expiration date of your policy. The notice must quote the reason it will not renew. The following are examples of reasons that companies use for non-renewal of a policy:
- you have had two or more at-fault accidents within the past six years;
- you have been convicted of a major or several minor driving violations in the last three years;
- you added a vehicle which the company does not insure, such as a commercial truck or an expensive sports car.
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Q: What factors affect my automobile insurance premium?
A: Insurance companies use a variety of risk factors to determine a premium. The cost of automobile insurance for different drivers varies as the level of risk for the insurance companies varies. Factors that could affect your premiums include:
- driving history, including previous at-fault accidents and driving violations;
- type of vehicle including make, model and model year;
- where you keep and drive your vehicle;
- the age and gender, along with the number of years licensed;
- the number of kilometres driven in a year;
- whether the vehicle is used for pleasure, commuting or business purposes.
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Q: What Happens After You File a Claim with Your Insurance Company?
A: Once your claim is reported, you will be contacted by the claims adjuster assigned to your file.
In some cases the adjuster will want to meet with you in person; in other cases the entire claim will be handled over the telephone. To support your claim, you may also be required to complete a claim form, also known as a Proof of Loss form (a sworn statement in support of your claim).
Your claims adjuster will determine the extent to which the claim is covered by your insurance policy, explain the coverages provided by your policy, and help guide you through the entire claims process.
If you have any questions or if there is something about your policy or claim that you don’t understand, ask your claims adjuster for clarification.
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Q: How Does Your Insurance Company Assess Fault?
A: Someone is always determined to be "at fault" in an automobile accident, whether partially or fully.
Insurance companies must determine the degree of fault to be assigned to each driver for purposes of determining which property damage coverages apply to the accident, and to ensure that the at-fault driver's premiums are adjusted appropriately.
The Insurance Act and the Fault Determination Rules made under the Insurance Act determine fault for an accident. The Fault Determination Rules are regulations put in place to help insurance companies provide consumers with prompt claims handling and consistent treatment.
After you report an accident to your insurer, the company will investigate the circumstances of the accident and then make a fault decision based on the Fault Determination Rules.
These rules:
- cover more than 40 accident situations, using diagrams to illustrate specific occurrences, can be applied to almost every possible road collision scenario, and
- are applied regardless of road or weather conditions, visibility, point of impact on the
vehicles, or the actions of pedestrians.
Fault is allocated to each driver based on which accident scenario most closely resembles the accident. If the accident is not described by any of the scenarios, then fault is allocated according to the ordinary rules of negligence law.
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Q: How Does an At-Fault Accident Affect Me?
A: A driver can be anywhere between 100 per cent and zero per cent at fault. Any driver who is more than zero per cent at fault will have an "at-fault" accident on his or her insurance record.
If you are found at fault for any percentage of the accident, more than likely, your premium will go up on renewal.
The degree to which you are at fault affects the amount you will receive from your insurer to repair your vehicle. For example - if you are 50% at fault - 50%of the repair cost would be paid under your Direct Compensation Property Damage coverage (less 50% of your deductible, if any). You must have collision coverage to claim the other 50% of the repair cost (less 50% of your deductible).
To confirm how your rates will be affected, check with your agent, broker, or company representative.
Note: When you lend your vehicle to someone, you are also lending him or her your insurance. If the individual you lent your vehicle to has an at-fault accident while using your vehicle, the accident will go on your insurance record, and your automobile insurance premium will go up.
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Q: How do tickets or convictions affect the insurance..........companies decision?
A: According to the regulation, the Fault Determination Rules must be applied without regard to such things as road or weather conditions, visibility or the point of impact on the vehicles. Determination on fault are made independently of decisions made by police officers to charge a driver. A charge under the Highway Traffic Act does not necessarily mean that the person charged was "at fault" for insurance purposes. In the same way, a lack of charges does not mean that the person was "not at fault" for insurance purposes. The Fault Determination Rules determines the companies decisions.
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Q: How long does the medical treatment last?
A: It all depends on your injuries but the longer your recovery period, the greater your "pain and suffering," therefore the higher the settlement value your bodily injury claim will be.
Step-by-Step Program: Compensatory Damages
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Q: How long it takes to close a case with the final settlement?
A: It takes from 7 to 14 months to close Accident Benefits case in Ontario.
Step-by-Step Program: Final Settlement
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Q: When lawyers have to be involved?
A: When someone has to deal with serious medical problems in a result of a car accident then legal assistance is necessary.
Read about Types of injury and Tort Claims for more information.
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