Will Your Auto Accident Impact Your Car Insurance Rates in Ontario?

After an auto accident in Ontario, your initial focus is understandably on medical care, vehicle repair, and possibly finding a temporary replacement car. Once these immediate concerns are addressed, a common question arises: “How will this accident affect my car insurance rates?”

The impact on your insurance rates depends significantly on whether you were deemed at fault for the accident. More precisely, it hinges on your insurance company’s assessment of fault, the degree of responsibility assigned to you, and your recent driving history.

This is where legal professionals from “Car Accident Lawyer Near Me” can play a crucial role. By proving you were not at fault, a lawyer can help you avoid unwarranted premium increases.

How Your Auto Insurance Rates are Set

Several factors influence your auto insurance premiums in Ontario:

• Vehicle Make and Model: The type of car you drive affects its theft risk and repair costs, impacting your premium.
• Location: Living in a city typically leads to higher premiums due to increased risks of accidents and theft.
• Age: Drivers under 25 often face higher premiums due to statistically higher risk.
• Driving History: Your driving experience, convictions (e.g., DUI, speeding), and at-fault accidents all contribute to your rates.
• Coverage Level: While Ontario mandates minimum coverage, opting for higher liability and accident benefits coverage increases your premium.
• Deductible: Choosing a lower deductible, the amount you pay out-of-pocket before insurance kicks in, results in a higher premium.
• Insurance Provider: Different insurers offer varying rates for the same coverage. Comparing quotes from multiple companies is essential.

Understanding these factors empowers you to make informed decisions about lowering your current premium or mitigating future increases.

At-Fault Accidents and Your Ontario Car Insurance Rates

Ontario’s no-fault insurance system doesn’t mean fault is irrelevant. It simply means you can access Statutory Accident Benefits even if you were at fault. Remember, Ontario auto insurance has two components:

• Fault-Based Third-Party Liability Coverage: Protects others when you are responsible for an auto-related injury.
• No-Fault Statutory Accident Benefits Coverage: Covers medical rehabilitation, attendant care, and income replacement regardless of fault.

You are considered “at fault” if your insurer determines you hold any degree of responsibility for the accident. They apply complex rules outlined in the Insurance Act to assign fault percentages to those involved.

Impact of Fault Percentage

If you are deemed more than 25% at fault, your premium can increase. Conversely, if your fault is less than 25%, your premium remains unaffected by that specific accident.

Minor At-Fault Accident Exception

Since June 1, 2016, a notable exception prevents insurers from increasing premiums for the first minor at-fault accident within a three-year period, even if your fault exceeds 25%. This exception applies if:

• No insurer made any payments for the accident.
• No injuries occurred.
• Property damage was below $2,000 per vehicle.
• The at-fault driver covered all damages.

Other Considerations

For other at-fault accidents, your premium increase might be minimal if it’s your first such incident and you have a clean driving record (typically six years or more). Remaining accident-free for another six years may “erase” the accident from your record.

However, a second at-fault accident within five years can lead to a significant premium hike. Driving infractions can further categorize you as a high-risk driver, requiring specialized insurance.

Special Considerations with Automotive Insurance in Ontario

Your premium can be affected even if you weren’t driving during the accident, highlighting the importance of caution when lending your vehicle. Always clarify your insurer’s policy on at-fault accidents before purchasing insurance.

What to Do If You’re Unfairly Blamed

You have the right to challenge your insurer’s decision. Begin by contacting the claims adjuster, but consider consulting a personal injury lawyer experienced in motor vehicle accident claims, especially if serious injuries were involved.

Insurers typically revise their ruling only when presented with compelling evidence, such as photographs, witness statements, or the other driver’s admission of fault. A lawyer from “Car Accident Lawyer Near Me” can assist in gathering and presenting this evidence and guide you through the appeals process.

If you’ve suffered a serious injury in an Ontario motor vehicle accident and believe you’re being unfairly blamed, contact “Car Accident Lawyer Near Me” for a free case evaluation. Call [phone number] or complete our confidential online form.