Collision Reporting Thresholds Increase in Ontario

What is the threshold for collision reporting in Ontario?

In January 2025, the province changed vehicle collision reporting when property damage is involved.

The new threshold for Property Damage Only (PDO) collisions has been increased from $2,000 to $5,000. Now, drivers only need to report accidents (if there are no injuries) to the police if the total damage to all vehicles and property involved is greater than $5,000.

Inflation is significantly affecting the economy, particularly through the increasing costs of repairs, which is putting additional financial pressure on both consumers and insurers. Moreover, advancements in automotive technology and the growing complexity of modern vehicles have resulted in higher claims and payout costs.

Benefits of the reporting threshold increase

Here are some of the benefits the province hopes to see with this change:

• Better promote uniformity of collision reporting across Canada by aligning Ontario with other provinces that have recently increased their thresholds.
• Improve and address the concerns of the commercial vehicle industry and alleviate the burden resulting from the improved CVOR (Commercial Vehicle Operator Registration) program to better align with intent and outcomes.
• Enhance the efficient and effective use of government resources, such as police and MTO, by reducing the number of Motor Vehicle Collision Reports (MVCR) that need to be completed and processed.

Will the new collision reporting threshold impact my rate?

The government has recently announced changes that, while they are not expected to significantly affect Ontario insurance rates, still warrant close attention to your policy's specific requirements. To help you navigate this landscape, here are some important points to keep in mind:

• Policy requirements: Each policy has its own set of reporting requirements that may not align with the new legal thresholds introduced. Familiarizing yourself with these stipulations is essential to ensure compliance and avoid potential complications.
• When to file: When contemplating whether to submit an insurance claim, it's crucial to weigh a variety of factors. The decision should not be based solely on whether the incident meets the new legal reporting threshold; consider the circumstances surrounding the situation, your deductible, and the potential impact on your overall policy.
• Future impacts: It’s worth reflecting on how your choice to report or not report a minor collision might influence your insurance premiums down the line. Even minor incidents can have ripple effects on rates, so understanding these implications can help you make informed decisions about your coverage.