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The Highway Traffic Act requires any person involved in a car accident to:
By law, all collisions must be reported to the police if there are any personal injuries or deaths, and where the damage to all vehicles is more than $1,000.
Your automobile policy requires you to report such accidents to the insurance company within seven days. If you are incapacitated by the accident and are unable to report within the seven days, report it as soon as possible.
The penalty for failing to report a collision and/or failing to provide the necessary information is a fine of $200 to $1,000, three demerit points, a possible jail term and driver's licence suspension. The penalty for leaving the scene of a collision includes seven demerit points.
The police are required by law to investigate all reportable motor vehicle collisions and to provide a report to the Registrar of Motor Vehicles (MTO).
If you're injured in an automobile accident, you may be entitled to a variety of benefits. A full description of coverage provided is contained in the "Statutory Accident Benefits Schedule." A copy of this document is available on request from your insurer. Your insurer will provide you with the necessary claim forms and will help you complete them.
If your vehicle is damaged but repairable (and you have the necessary coverage in your policy) your insurer may suggest the repairs be carried out by one of their "preferred shops." If this is done, it will be the responsibility of the insurer to make sure the work is done satisfactorily. You may, if you wish, have the work done by a repair shop of your choice. However, be aware that the insurer will not pay any more than the price quoted by their repairer. Also, if the work is unsatisfactory, it will be your responsibility to deal with the repair shop. If the damage is major and cannot be repaired safely, or the cost of repairs is more than the value of the vehicle, the insurer may decide to "write off" the vehicle. They will negotiate a settlement based on the actual cash value of the vehicle at the time of the accident.
When an insurer is paying for a vehicle to be repaired, the shop will replace damaged parts with parts of the same vintage as the car. For example, the damaged bumper of a 1994 car would be replaced with a 1994 bumper. If new parts are used, even though used parts are available, the value of the car may be increased. In such a case an amount will be calculated, known as "betterment," representing the increase in value, and you may be asked to contribute to the cost of repairs.
Criminals find it profitable to steal and sell automobile equipment and accessories. This type of loss would be covered under your automobile policy if you have bought All Perils, Comprehensive or Specified Perils coverage.
However, your personal property in the vehicle, such as audiotapes (except for one in the machine), briefcases, suitcases, golf clubs, skis, bikes, fishing equipment and so on, is not covered under the automobile policy. For these things you need Homeowner’s, Tenant’s or Condominium insurance. Personal property is usually insured for up to 10% of the amount of the policy limit or $1,500, (whichever is greater) while this property is temporarily away from your premises, anywhere in the world.
You may have to pay two deductibles. There is a deductible for the automobile policy (except in the case of fire, lightning). Your Homeowner’s/Tenant’s/Condominium policy has a separate deductible.
If you leave the keys in the car or leave it unlocked, the vehicle itself (and its accessories) will be covered under your automobile policy if you have purchased coverage. As for the contents, some Homeowner’s, Tenant’s and Condominium policies require visible signs of forced entry into a locked vehicle as a policy condition. Claims from an unlocked vehicle would not be covered by these policies.
The trunk of a full-size car can accommodate a bicycle if you take the front wheel off. Some cars have a special hatch or sleeve to accommodate skis and poles so they extend from the trunk into the rear seat area. Ask your insurance representative about scheduling your sports equipment, cameras and other vulnerable items with additional coverage, especially if your policy has a forced entry policy condition.
Before you have to make a claim under your home insurance, it is advisable to have an up-to-date inventory of your possessions. This could be a written listing, photographs or perhaps a video. Your inventory should be stored AWAY FROM YOUR HOME. Should you suffer a loss by burglary or theft, the loss must be reported to the police.
It does matter who caused the accident.
You certainly can't be blamed for being confused about the term "no-fault" insurance – it’s a commonly misunderstood term. No-fault insurance doesn't mean the insurance company lets you off the hook if you cause an accident. Despite the misleading name, it does matter who caused the accident, and if you are found to be at fault, either completely or partially, it will go on your insurance record. That means you may experience an increase in your future premiums.
No-fault insurance really means that if you are injured or your car is damaged in an accident, 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 or for the health care and income replacement benefits to which you are entitled.
For example, if you were injured in a car accident, you would ask for any medical benefits offered under your policy immediately from your company, even if you were to blame for the accident. So you can get the help you need right away, instead of having to wait for the insurance companies to decide who was at fault before paying any benefits.
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 so they can adjust at-fault drivers’ premiums. In Quebec and Ontario, charts or rules are used to determine fault or responsibility for property damage claims – damage to your car – but not for injury claims. In Ontario, fault is determined by the Ontario Insurance Act and the Fault Determination Rules of that same Act.
The Fault Determination Rules contain examples of common types of collisions and explain how to assign fault for insurance purposes. They help insurance companies handle claims promptly and to be fair and consistent. After you report an accident to your insurer, your company investigates the accident and then makes a fault decision based on these rules.
The Fault Determination Rules:
If the circumstances show more than one driver was negligent (or at fault), each driver's insurance company may become involved in the settlement, based on the degree of responsibility connected with each driver. If there is a dispute about responsibility, it may be necessary to go to court to resolve it.
Visit the government website dedicated to auto insurance in the province at www.autoinsurance.gov.on.ca to download a copy of Ontario’s Fault Determination Rules, or visit Publications Ontario’s website at www.gov.on.ca/MBS/english/publications to find out how to order a copy of the Fault Determination Rules by telephone, fax or mail.
If police don’t file charges, it doesn’t mean the insurance companies investigating the accident will not find one or more of the drivers involved at fault.
For example, if a vehicle was unable to stop on an icy road and rear-ended another, a police officer may say neither of the drivers was “at fault.” But this relates to the laying of charges and should not be taken as an opinion about how fault applies to an auto insurance claim. In a case like this, the insurer would apply the rule stating that any vehicle that rear-ends another is at fault. However, with certain types of charges, the fault determination rules don’t apply. In these cases, fault is determined according to the ordinary rules of law.
Yes. Circumstances may show that more than one driver is partially at fault for insurance purposes. Fault is allocated to each driver based on the accident scenario in the Fault Determination Rules that most closely resembles the accident. If an accident is not described by any of the scenarios, then fault is allocated according to the rules of law.
It is important to get independent witnesses, if possible. When there are two different versions of what caused the accident and no independent evidence, claims are usually settled on a 50/50 basis. This may affect your premium at renewal.
No. Your rates will not go up if you are 100% not at fault. However, if you are partially at fault, it may affect your rating.
Your insurance company may pursue the owner of the uninsured automobile and attempt to obtain a judgment against him or her to recover the claim and your deductible, but this could take time.
You can be anywhere between 100% and 0% at fault. Any driver who is more than 0% at fault will have an “at-fault” accident on his or her insurance record.
If you’re found at fault for any percentage of the accident, your premium may go up on renewal. However, some companies allow you to maintain your driving record or premium after your first at-fault accident. To confirm your company’s approach and how your rates will be affected, ask your insurance representative.
In many cases, if you have your first at-fault accident after six or more years without any claims or convictions, your premium may not change or may increase by only a small amount. Most companies will change your driving record to reflect the accident and increase your premium by a small amount. You will then need six years of accident-free driving before you go back to a clean slate.
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 specializing in these types of risks.
When you are shopping for insurance, always ask the insurance representative how your premiums will be affected after an at-fault accident.
In addition, remember when you lend your car to someone, you’re also lending him or her your insurance. If the individual you lent your car to has an at-fault accident with your car, the accident will go on your insurance record and your insurance premium could go up.
What can I do if I disagree with my insurance company’s assessment of fault?
If you don’t agree with your insurance company’s decision and believe the decision does not accurately reflect the circumstances of the accident, speak to the claims adjuster handling your file. Ask him or her what fault determination rule was applied in your case.
Bring any new information to your insurance company. Generally, an insurance company will revise or reconsider its decision on fault only if additional relevant information is provided. For example, if an accident occurred in which each driver stated the other had gone through a red light, an insurance company would have little choice but to assign fifty-fifty fault. However, if an eyewitness confirmed which driver went through the red light, an insurance company could review its decision. If your insurance company refuses to revise its decision and you still disagree, contact your company’s complaint officer. He or she will guide you through the company’s complaint-handling procedures.
What are my rights if I drive without insurance and I'm in an accident in Ontario that's not my fault? Can I sue the at-fault driver and recover my losses from his or her insurer?
If you drive without insurance, the Ontario Insurance Act takes away your right to recover any loss or damage from bodily injury or death from the other person. The Act also takes away your right to recover damage to the vehicle or its contents from the other person.
In fact, if you’re at fault, the other person's insurance company can sue you to recover the amounts they paid out!
In conclusion, don't think "no-fault" means no blame. Your best bet is to drive safely, whatever the insurance system in your province. No one can find fault with that.
A vehicle is a total loss when repairs cannot be economically or safely carried out, for example, when repairs would cost more than the market value of the car.
Market value or actual cash value (referred to in your automobile policy) is what your vehicle could have reasonably sold for the day before the claim. Mileage, condition of the vehicle, equipment and retail selling price are all considered in determining the amount to be paid on the claim.
Your insurance company calculates the vehicle's actual cash value including retail sales tax and GST, where applicable, and offers you a cash settlement. It is your responsibility to purchase a replacement vehicle.
From time to time, people believe they have not been offered a fair settlement. An individual can be better informed about what is a fair settlement by doing a bit of research. Check with your local newspapers to see the price of similar vehicles. Car dealers and automobile trade magazines are also excellent sources for comparable pricing. Select five prices of cars similar to yours then take the average. You should now have a reasonable ballpark figure.
Also, if you’ve completed work on your vehicle that would increase the selling price, tell your insurance company and provide receipts to help them in determining your cash settlement. Repairs needed to maintain your car in good running order may not increase the selling price of your vehicle. For example, if you needed new brakes to operate your vehicle, it would not increase the selling price because the purchaser would expect the brakes to be working properly. However, an opinion from the person who regularly services your car on the condition and retail value is helpful. It is preferable to get this opinion in writing.
If, after you have done your homework, you still disagree with the cash offer, go back to your claims representative and discuss the matter. Advise him or her of the information you have gathered and ask how the amount was determined by the company. If there is still disagreement, discuss the matter with your insurance representative.
If you are unable to come to an agreement and the amount is $10,000 or lower, you can take the matter to small claims court. Otherwise, if the amount is over $10,000, seek legal advice. Please call our Consumer Information Centre at 416-362-9528 or outside Toronto at 1-800-387-2880, Monday through Friday between 8:00 a.m. and 6:00 p.m.
Sometimes your car is repaired with new parts, but not always.
The policy or contract you signed with your insurance company calls for repairs with parts of “similar kind and quality.”
If your vehicle is in its first production year, there will likely be only OEM (Original Equipment Manufacturer) parts available to complete repair. These parts are new, of course.
New parts may also include "after-market" replacement parts. After-market parts can be an overrun from makers of original parts, or made by manufacturers who specialize in replacement automobile parts. After-market parts approved by Certified Automobile Parts Association meet or exceed Original Equipment Manufactured specifications and are suitable replacement parts.
Safety-related parts are usually new. Regardless of the age of your vehicle, most insurance companies will insist that safety-related parts required for repairs be new. For example, a 50% worn tire would be replaced with a new tire and you, as policyholder, are expected to pay for the extra tire life added to that wheel. This is called “betterment."
As any vehicle ages, it loses some of its value. That’s why the insurance company is justified in replacing damaged parts with recycled parts which are undamaged. This complies with an agreement in your policy.
On March 31, 2003, the Ontario government mandated the branding of all severely structurally damaged vehicles in Ontario.
The Vehicle Branding Program is aimed at making roads safer and countering motor vehicle fraud and theft. The program’s major objectives are to:
Irreparable - a vehicle that can be used for parts or scrap only. This vehicle cannot be driven in Ontario.
Salvage - a vehicle that can be repaired and is subject to inspection criteria approval.
Rebuilt - a vehicle that was branded as “salvage,” but has been rebuilt and inspected in accordance with regulatory criteria.
Stolen - this brand can only be assigned or cancelled by police. It is assigned to a vehicle that is stolen and not recovered by police. This brand makes it more difficult for thieves to register stolen vehicles because it prevents thieves from putting the VINs from wrecks onto stolen cars.
Trailers, traction engines, farm tractors, road-building machines, bicycles, motor-assisted bicycles, motorized snow vehicles, street cars and motorcycles (other than motorcycles that are irreparable) or motor vehicles with a model year of 1980 or earlier.
When your vehicle is a total loss, the insurance company will offer you a cash settlement, then brand and take ownership of your vehicle. If you want to keep your vehicle and your insurer is willing, your settlement will be reduced by the amount the insurer could get from a salvager for the damaged vehicle.
Before you decide to keep your vehicle, consider the following:
When you purchase a used vehicle, you may request a used car package from MTO that gives information on the vehicle’s past owners. If the ownership was ever in the name of an insurance company, it’s usually because the vehicle has been branded.
Brands are registered by the VIN of the vehicle. The brand is displayed on the vehicle permit issued by MTO in Ontario or the licensing authorities in other provinces.
If a vehicle was branded as “salvage” and reclassified as “rebuilt”, you know that the vehicle has passed a rigid inspection after being repaired and is safe to drive.
This program greatly reduces fraud. Many unsuspecting consumers have purchased stolen vehicles and later had them seized by the police with little hope of recovering the money they paid for the vehicle. Branding offers greater consumer protection as more and more vehicles are entered into the system and their histories are tracked. This makes it easier to tell whether or not a car has had a questionable history.
The information contained with in this page is "Information provided courtesy of Insurance Bureau of Canada. (http://www.ibc.ca/)"
The information is part of the "Ontario Auto Insurance Frequently Asked Questions" (http://www.ibc.ca/en/Car_Insurance/documents/brochure/on-faq.pdf) document. All information contained on this page is from this document and is used to help educate you, our customer, of your rights and responsibilities in reguards to your insurance.