Mythbuster: Does "no-fault insurance" mean no one is responsible in a car accident?
Ontario's no-fault insurance system is a highly misunderstood concept. No-fault insurance does not mean that when an accident occurs no one is responsible for the accident and no fault is assigned. Rather, it means that for any losses that occur from an accident, each driver reports the losses to his or her own insurance company instead of to the other party's insurance company.
Your insurance company pays for damages to your vehicle and any benefits for injuries you sustain.
In provinces that have "at-fault" insurance systems, the insurance companies of the parties involved first determine who is responsible for the accident before any benefits are paid. In a "no-fault" system, you receive the benefit of your policy before the insurers determine who is responsible for the accident. The insurers then settle the bill between themselves.
What can be confusing is the difference between a "no-fault" system and being "not-at-fault" for a collision. In Ontario, fault is always determined and assigned in accident situations; someone is always responsible for the accident whether in part or in full.
Fault is assigned by percentage. If you're completely responsible, you are 100% at fault. If you weren't at all responsible, you are 0% at fault. If you're partly responsible, you'll be assigned a percentage based on how involved you were in causing the accident. So, you can have "no-fault" insurance but still be "at-fault" for an accident.
If you are responsible for an accident, it will be noted on your driving record and in your insurance history.
When you need to make a claim for your OTIP auto insurance, our representatives will walk you through the process and explain how making a claim will affect your policy. We can also recommend a list of preferred vendors who you can trust to repair your vehicle. We're here to help!