Being involved in a motor vehicle accident can be both physically and mentally taxing. The added financial burden can further strain the road to recovery. The last thing you want to worry about is car insurance after the accident.
Many people are unsure of how to navigate a motor vehicle-related claim, what to expect based on their situation, and if a personal injury claim affects car insurance.
So we put together a short explanation about how your personal injury case may impact your car insurance.
It is important to know that every claim is different and that the steps you take are dependent on the circumstances around the motor-vehicle accident.
Generally speaking, insurance premiums will almost always increase for the at fault party.
Motor vehicle accidents typically have two components: a tort component and an accident benefits component.
The accident benefits regime is no-fault coverage. Regardless of who was at fault, you can access these benefits through your own insurance provider. However, if you are at fault and bring a claim to your own insurance provider for accident benefits, you will likely see a premium increase. If you are at fault and the other driver involved in the accident sues you, this will also likely increase your insurance premium.
If you are not at fault and decide to commence an accident benefits claim, you will likely not see a premium increase.
Of course, every case is unique; while this is a good rule of thumb, there are exceptions depending on the circumstance of the motor vehicle accident. Also, your insurance premiums may increase due to other factors the following year that are unrelated to the accident.
Therefore, if you have been involved in a motor vehicle accident and you are wondering whether or not your insurance premiums will increase, you will first need to first establish whether or not you were at fault for the accident.
Depending on whether you pursue an Accident Benefits claim or a tort claim will help determine the fault rules.
In the Accident Benefits system, fault is determined using the Fault Determination Rules, a set of regulations used to assign fault for motor vehicle accidents based on specific scenarios, regardless of police reports or personal statements.
In a tort claim, fault is established by an injured party who seeks compensation for losses caused by another’s negligence or wrongful act.
The answer is yes!
In Ontario, even if you are found 100% at fault in a motor vehicle accident, Accident Benefits are still available to you.
Accident Benefits coverage applies regardless of who is at fault for the accident. You can access support for: medical costs, rehabilitation, income replacement, and more.
If you are severely injured following an accident and are unable to return to work or navigate your everyday life, it is very important to consider pursuing an accident benefits claim. If your injuries are significant enough, it would most likely cost more to pay for medical rehabilitation out of pocket than a premium increase.
For this reason, we typically recommend pursuing accident benefits even if you are at-fault because most clients appreciate the support.
In some cases, if you have a clean driving record, you may have access to an “accident forgiveness” policy, which is a reprieve on accident-related premium increases. Ask your insurance company if you qualify for this feature.
If you are deemed 100% at fault for the accident, you may not have grounds for a viable tort claim.
You can only commence a personal injury claim under the tort regime if you are not fully at fault for the accident.
However, you may still commence a tort claim if you are partially at fault, in which case you would be apportioned a percentage of fault. If this occurs, your insurance premiums may increase.
Motor vehicle accidents can happen in various ways, but understanding when a driver may be deemed at fault is crucial, as insurance premium increases are linked to fault determination.
Common situations where you will likely be found at fault are:
At Gosai Law, we understand that every case is different. If you believe you have been unfairly denied treatment or a benefit from your insurance company, we can help you.
If you have questions about your case or wish to get a better sense of the options available to you, contact our office today for a free consultation.
