Emily Chung: Mummy Mechanic


Auto Insurance: To Be At-Fault Or Not To Be At-Fault

Confused about Ontario's no-fault insurance?

I’m dating myself here but I remember when Ontario switched over to ‘no-fault’ insurance and it was a big change to our auto insurance system. Now, over 20 years later there’s still some confusion about what ‘no-fault’ really is. With the help of Fraser Wilkinson, Insurance Broker with Deeks Insurance, here’s what I found out about Ontario's no-fault insurance system. 

No-fault isn’t what it sounds like. Kinda like Cadbury’s Mini Fingers aren’t really tiny, small fingers and a fortune cookie doesn’t really have a fortune in it.
No-fault insurance in Ontario simply means that no matter who is at-fault in an accident, each insurance company will pay for their client’s damages. Companies no longer subrogate against each other because in the end each company will pay out roughly the same number of claims. Whether or not you’re at fault, the collision will show up on your record. 
What does this mean in terms of your insurance premiums?

 If you’re not at fault, it won’t have an impact on your premium (and vice versa)

 If you have the Accident Premium Protector option, this is the first at fault collision and you haven’t had one in the last 6 years, your rates are protected

 You are deemed a high risk driver if you have more than 1 at fault accident in 5 years

So be aware that Ontario's ‘no-fault’ insurance doesn’t actually mean that no one is held responsible in a collision. There are other provinces with similar 'no-fault' insurance structures. You can find more information on auto insurance for your specific province at the Insurance Bureau of Canada