Frequently Asked Questions – Auto Insurance – Claims

In Ontario, companies are required to use Regulation 668, Fault Determination Rules, to assess fault in an accident for purposes of vehicle damage. These rules:

• Cover more than 40 accident situations using diagrams to illustrate specific occurrences;
• Can be applied to almost every possible road collision scenario; and,
• Are applied regardless of road or weather conditions, visibility, point of impact on the vehicles, or the actions of pedestrians.

These rules help insurance companies deal with vehicle damage claims quickly and economically.

According to the regulation, the Fault Determination Rules must be applied without regard to such things as road or weather conditions, visibility or the point of impact on the vehicles. As well, determinations on fault are made independently of decisions made by police officers to charge a driver. A charge under the Highway Traffic Act does not necessarily mean that the person charged was "at fault" for insurance purposes. In the same way, a lack of charges does not mean that no one was at fault.

For example, if a car was unable to stop on an icy road and rear-ended another, a police officer may have told the parties "no one was at fault". This comment relates to the laying of charges and should not be taken as an opinion with respect to the Fault Determination Rules for purposes of dealing with an auto insurance claim or rating. In this case, the insurer would apply the Fault Determination Rule, which indicates that a car that rear-ends another is at fault.

The degree to which you are at-fault affects the amount you will receive from your insurer to repair your vehicle. For example, if you were 50% not at fault, 50% of the repair cost would be paid under your Direct Compensation-Property Damage coverage (less 50% of your deductible, if any). You must have collision coverage to claim the other 50% of the repair cost (less 50% of your deductible).

Generally, insurance companies will increase your premiums, at your next renewal date, if you have been deemed to be fully or partially at fault in an accident.

If you accept a cash settlement, the insurance company will require proof that the repairs to your vehicle are completed within 30 days of the settlement. In some cases, a safety inspection may also be required to maintain insurance coverage.

If rental car coverage applies to your damaged automobile, you are entitled to a rental on the day your vehicle is scheduled for repairs. If your vehicle is not driveable due to the damages, you will be entitled to the rental car immediately.

Rental car coverage (formally called a car rental endorsement) is an optional benefit and can be added to your policy at any time. If you have this coverage, it will be indicated on the Certificate of Automobile Insurance for the vehicle and will list the limits that apply.

When an unidentified third party has hit your vehicle, the collision or all perils deductible stated on your declaration page will apply. You should report the incident to the police within 24 hours.

You may choose to have your automobile repaired at a licensed repair shop of your choice or at one of the repair shops in our Preferred Auto Network. If you choose your own repair shop, a shop in our Preferred Auto Network must complete the estimate for the repairs. The maximum amount allowable will be based on this estimate.