What You Need to Know About Car Crashes and Your Insurance Rates

Being in a car crash, even a minor one, can be stressful.

According to a national transportation agency, there are roughly 120,000 reported collisions annually. In terms of injuries and fatalities, the agency’s data shows 1,768 deaths and over 8,000 serious injuries in 2021.

Regardless of severity, insurance companies will assign fault in a collision. Provincial fault determination rules dictate who’s responsible in various scenarios. You could be found fully or partially at fault.

An at-fault collision stays on your driving record for up to six years, raising your insurance premium by as much as 25% at renewal. A not-at-fault collision typically won’t affect your rate.

Accident Forgiveness: A Potential Lifeline

Some insurers offer an add-on for your car insurance called “accident forgiveness.”

If you’ve been accident-free for at least six years, your provider might include it, but it’s only usable once every three years. With accident forgiveness, a minor at-fault collision won’t trigger a premium hike. However, the accident will be on your record, potentially impacting your rate if you switch insurers.

Provincial insurance regulations forbid insurers from raising rates for a driver’s first minor at-fault collision in three years, as long as the damage is under $2,000 with no injuries and no payout by the insurer.

What to Do After a Collision

If there are injuries, call emergency services immediately. For minor crashes with less than $2,000 in damage and no injuries, visit a Collision Reporting Centre within 24 hours to document the incident.

For damages exceeding $2,000, both drivers should visit a Collision Reporting Centre. If the other driver is uninsured or suspected of impairment, call the police.

Don’t admit fault or argue with the other driver, but document the scene. Safely take photos and videos of the damage and scene. If possible, get the other driver’s details (name, license, address, phone number, insurance information, license plate number, vehicle make/model/color) and exchange your information.

Report the incident and file a claim with your insurer as soon as possible. If you have optional collision coverage, your insurer will cover repairs to your vehicle from an accident with another car, a stationary object, or a hit-and-run by an unknown driver (subject to a deductible).

However, if you’re not at fault (in Ontario), your mandatory direct compensation-property damage (DC-PD) coverage pays for repairs to your vehicle and its contents.

Stay Calm and Compare Rates

Accidents happen. Don’t panic. Regardless of the situation, you can always compare car insurance policies and premiums to find the right coverage at an affordable price. Contact Car Accident Lawyer Toronto today to help you with your case.