No-fault insurance isn’t complicated, it simply explains the system by which claims are handled by insurance companies involved in Ontario.

Here’s an overview of what newcomers to Ontario need to know about our insurance system.

What is “no-fault” insurance?

No-fault insurance refers to the system by which insurance claims are handled in Ontario. Having this system doesn’t mean you can’t be found at fault for an accident – in every claim situation where two drivers are involved, the insurance companies involved use a set of government rules to determine who is at fault.

Under the no-fault system, regardless of who is found at fault for the accident, each person’s respective insurance company will handle their claims. For example, if you’re rear-ended by someone, the other person would be at fault for the accident, but you would deal directly with your own insurance company instead of with the other driver’s insurance company.

Determining fault in Ontario

The two insurance companies of those involved in the collision will investigate the accident and determine fault. The Fault Determination Rules they will use are province-wide, and all insurance companies must use them. The rules are applied to accidents in Ontario regardless of road conditions, actions of pedestrians, and various other comprehensive criteria. For more information on the rules that determine fault, refer to the Insurance Bureau of Canada’s Fault Assessment article.

If you are new to Ontario and are coming from a province that uses a private insurance system, you may find Ontario’s very different from the one that applied to you before. When you first arrive, it’s good idea to gain an understanding of not only Ontario’s insurance system, but also Ontario’s rules of the road. Be sure to obtain a variety of insurance quotes so you can get an idea of what the range of premium costs is across various insurance companies.

Benefits for Ontario drivers

The no-fault insurance system was created to simplify the process of addressing claims. Having your own insurance company deal with your claims, regardless of if you are at fault or not, can save a lot of time, cost, and effort on your part.

Under the no-fault system, Accident Benefits coverage is available even if you are entirely at fault for an accident. Yes – in Ontario, Accident Benefits coverage applies regardless of who is responsible, and includes medical, rehabilitation, attendant care, caregiver, and more. Read more about the details of Ontario’s mandatory insurance coverage.

Ontario’s insurance system was designed to make sure all drivers have the coverage they need and that insurance rates can remain affordable. If you are new to the province and are looking for the car insurance policy that’s right for you, start your research on our Auto Insurance page. We offer benefits for things that set you apart and that can mean big savings.