When it comes to car insurance, the name “no-fault” can be misleading. So what exactly does it mean? Keep reading to learn what no-fault insurance actually is, how fault is determined in Ontario, how it benefits Ontario drivers, and the disadvantages of having this kind of insurance.
1. What No-Fault Really Means
Many provinces in Canada, including Ontario, have adopted a no-fault insurance system that was designed to help make the claims process more streamlined. While the no-fault system can be beneficial to drivers, it can also cause a lot of confusion. The fact of the matter is, the system isn’t actually that complicated; it just dictates how claims are handled by insurance companies.
No-fault insurance doesn’t mean that insurance companies won’t figure out who’s at fault in the event of an accident; rather, in each and every claim situation where two or more drivers are involved, the insurance companies will determine who is at fault for the accident.
What it does mean is that no matter who’s found to be at fault, your insurance will handle your claim for damages and/or injuries, and will pay you out for those damages and/or injuries. The other person’s or other people’s insurance companies will do the same. This makes it easier for drivers since they just have to contact their own insurance company rather than go after there other driver’s insurance, or worry about if the other driver doesn’t have insurance to pay for damages and injuries.
One of the drivers will still be considered negligent or at fault, and he or she will likely have an increase when shopping for car insurance quotes, or when they renew with that insurance company. If fault is split between drivers, both might experience a rise in insurance rates.
2. How Fault is Determined
In the scenario where there are two drivers involved, the insurance companies will each do their own investigation to determine fault. They use Fault Determination Rules that are standard across the province, and these rules are applied regardless of the type of accident and the actions of drivers or pedestrians, road conditions, and any other criteria.
3. How No-Fault Insurance Benefits Drivers
As mentioned already, the no-fault insurance system came into play in order to make the claims process simpler for each driver who is involved in an accident, regardless if they are the ones who were at fault. This saves a lot of time, energy, and money for each driver, since they don’t have to chase after other drivers to pay out their claims.
Under the no-fault system, coverage for accident benefits is available even if you’re the one who is at fault for the accident. Ontario’s Accident Benefits coverage will pay out regardless of who has caused the accident, and includes payment for things like attendant care, medical costs, rehabilitation costs, caregiver costs, and more.
The insurance system in Ontario was built to ensure all drivers have the coverage they need, while still remaining affordable.
4. Insurance Facts
Drivers, no matter who is at fault, will receive their insurance benefits quickly and without having to go to court, This allows them to get their cars fixed or replaced quickly, and to have any medical concerns addressed without having to worry if the other company will pay what is needed. In some cases, the drivers can still sue the other person for pain and suffering, and other damages beyond what was paid out by their own insurance company.
Another benefit of no-fault insurance is that the huge cost of long legal battles is cut down, which saves drivers insurance rates overall.
If you’ve been involved in an accident and want to see if you have options beyond the claim with your insurance company, call an experienced accident lawyer who can help.
