In this post we’re going to dig a little deeper into something that’s important to know when it comes to our provincial car insurance system – what happens when there is property damage with an accident or incident.

No fault insurance and property damage

As we’ve discussed previously, Ontario is a no fault province when it comes to car insurance. (Missed the post? Click here to get the low down on no fault insurance and an understanding of what it means).

Property damage is not part of our no fault insurance system. While in the event of an accident, no fault will kick in to ensure that compensation is given for bodily harm or injury prior to the determination of fault for the accident, it’s important to note that this does not apply to property damage. If there is any property damage resulting from the incident, it gets handled outside of the no fault umbrella with the fault determination rules set out in our province. The insurance companies determine who was at fault for the accident and then the claims are processed, usually resulting in an increase in rates for the driver at fault.

Am I covered for property damage?

The next logical question then is whether you are covered for property damage with your car insurance plan.

If you were at fault for the accident, your 3^rd party liability, which is part of the mandatory coverage in our province, kicks in to cover any property damage inflicted to another. (You can learn more about mandatory car insurance coverage in Ontario here). While there is mandatory car insurance coverage required for all drivers in Ontario, this basic coverage does not include your property damage if you were at fault for the accident. You would need to have purchased additional coverage such as collision coverage, or another optional coverage. (Learn more about some options here). If it’s determined that you were at fault for an accident resulting in property damage, you can expect an increase in your rates.

Was the accident not your fault? Then you should be covered with your mandatory Direct Compensation – Property Damage coverage and your insurance rates should not increase. What about in the event that the other driver cannot be found, such as in a hit and run? Then you would have had to purchase additional coverage, such as collision, as we mentioned above.

There are so many nuances and ins and outs when it comes to car insurance coverage. Rather than making assumptions about what you are covered for, it’s always best to discuss in detail with your broker or provider exactly what you are getting with your plan. If you have any questions at all about your coverage or what is or isn’t included, be sure to inform yourself. Our team is here to help with any queries you might have about car insurance in Ontario. Get in touch with us today.

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