Yesterday I talked about “no-fault” divorce. To continue the “no-fault” theme, I’d like to talk about another commonly known no-fault scheme in Canada – “no-fault” automobile insurance.
Many people believe that if you are involved in a car accident where two or more cars collided, you will get insurance payment regardless of fault. This is a misconception, at least in terms to damages to the vehicle.
“No-fault” insurance does not mean that an insurance company will let you off the hook even if you have caused the accident. To the contrary, fault is assigned in vehicle damage claims according to the Fault Determination Rules (R.R.O. 1990, Reg. 668, a regulation under the Insurance Act). These rules are technical and will apply regardless of road or weather conditions, visibility, and point of impact.
If you are found at fault, you will have an “at fault” accident on your insurance record. This is entirely separate from finding fault for other purposes, such as the laying of charges. In fact, sometimes the investigating police officer may conclude that the accident was the fault of neither drivers’ and that no charges will be laid, yet one or both of the drivers may nonetheless be found “at fault” on their insurance records.
What would happen if you were found at fault for vehicle insurance purposes?
The degree to which you are at fault would affect the amount you would be entitled to from your insurer to repair your car under Direct Compensation – Property Damage (DCPD, a legal jargon prescribed by the regulation). The insurer would only cover the amount (less deductible) that is attributed to the other driver’s fault.
For example, if you were found to be 50% at fault, you would only be compensated for the 50% of damages caused by the other driver (less deductible); if you are found 100% at fault, you would not receive a penny under DCPD.
If you want to recover the rest of the damages done to your car, you must have collision coverage in effect at the time of the accident. If you don’t have collision coverage, you will have to pay for the repairs yourself.
