Accident Forgiveness in Ontario

You likely already have good rates if you have a driving record. It may be worth it to get it to protect yourself in the event of causing an incident. Since June 1, 2016, Ontario insurers cannot raise your premiums for a single minor at-fault accident every three years, provided it meets specific forgiveness criteria. To qualify, the accident must result in no injuries, total damages must be under $2,000 per vehicle, and the at-fault driver must pay for those damages out-of-pocket without any insurance company making a payment. In short, if you handle a small fender-bender yourself, your rates stay protected, according to the Financial Services Commission of Ontario.

Not all drivers qualify for accident forgiveness. It is available to drivers with clean driving records - it is a way for insurers to reward claim-free drivers.

You cannot switch insurers to get it if you have a poor driving record or have been in multiple accidents. If this were the case, drivers would switch providers every time they were involved in an accident.

Here are some of the eligibility requirements you may need to meet to qualify for adding the protection, such as having an active policy and using a vehicle for personal use. Companies that offer it may require the following:

• Must have an active policy: You must be currently insured.
• Accident-free period: You must be licensed and free of mishaps for a defined number of years (usually 6).
• Vehicles for personal use only: Coverage is for private passenger automobiles only. It is not included with commercial auto insurance.
• When you get a new car: Eligibility will continue, even if you get a new vehicle.
• When you get a new policy: Some insurers will offer it as a way to acquire new customers when clients reach out for auto insurance.

There are many benefits to having accident forgiveness, including:

• First accident is forgiven: The first accident you are responsible for is forgiven, so it does not go on your driving record or affect your monthly payments.
• Standard with some companies: It may be included in policies for eligible drivers.
• Incentive to drive safely: It is an incentive to drive safely and stay claims-free.
• Helps keep your rates low: It helps to protect the low premiums you have worked to get.

Accident forgiveness does have limitations and conditions. Each company has a different set of rules for how it is governed. It’s important to read the fine print and understand the protection it provides.

Some of the common constraints include:

• First accident only: It only applies to your first at fault accident.
• This may not apply if you switch insurance companies: It does not travel with you if you switch providers.
• Accident-free period: You need to be accident-free for a specified period of time before an incident happens.
• Primary driver: It only protects the primary driver on the policy, not secondary drivers.
• Demerit points: It does not protect you from being charged or getting demerit points.
• Major driving offence: It does not apply if you are convicted of a major driving offence under the Ontario Highway Traffic Act or criminal charges.
• All companies have different coverage and rules: Companies administer it differently and have different applicable limits.
• Qualifying period: You may be required to be with your insurer for a specific period before qualifying.