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 a collision – 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.

No-Fault Insurance

Under the no-fault system

Regardless of who is found at fault for the collision, 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 collision, 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 crash and determine fault. The Fault Determination Rules are province-wide and all insurance companies must use them. The rules are applied to collisions in Ontario regardless of road conditions, actions of pedestrians, and various other comprehensive criteria.

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 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 are available even if you are entirely at fault for an auto collision.  In Ontario, Accident Benefits coverage applies regardless of who is responsible which includes medical, rehabilitation, attendant care, caregiver, and more.

The advice and information contained in this article are for educational purposes only and is not intended to replace an insurance company’s advice. Please always consult your auto insurance company for your insurance needs.

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