The last thing you want to deal with is a collision when driving, but it can happen. Working alongside the parties involved and auto-insurance providers can be frustrating. All you want to do is settle your claim and get back on the road. The no-fault auto insurance system was designed to simplify the claims process when a collision occurs. Currently, there are six provinces in Canada that have a no-fault auto insurance system, including Ontario. While there’s a lot of confusion about how this works, we will break down the process below.
Here’s what you need to know about no-fault auto insurance:
What is no-fault insurance?
This type of auto insurance does not mean that you will never be considered at fault if you experience a collision or that the police won’t charge you if you violate the law during a collision. Instead, it focuses on how your insurance provider will pay out a claim. A traditional auto insurance system usually involves an auto insurance provider of a single party paying out the claim to both you and all the other parties involved in the collision. This was frustrating for some drivers because it meant proving who was at fault for the collision. The insurance provider of the person who was deemed at fault would then be expected to cover the claim.
However, under a no-fault auto insurance policy, both parties will file a claim with their own auto insurance provider regardless of who is deemed at fault in the collision. Your insurance company will always take responsibility and pay for any covered damage and injuries to you, your car, and your passengers.
How fault is determined
Even no-fault insurance providers will still complete an investigation to determine the level of fault of all parties involved in the collision. Depending on the province, there will be a set of guidelines known as the Fault Determination Rules, which will help the no-fault insurance provider determine fault.
Since auto insurance providers will still consider how much you were at fault during an accident, it can affect your auto insurance premiums. So, it’s essential to keep in mind that although your insurance claim may payout with no-fault auto insurance, it doesn’t mean there can’t be other adverse effects to your insurance if you are in a collision while driving unsafely.
Benefits of No-Fault Insurance
When you have no-fault auto insurance, the claims process is more straightforward because you won’t have to coordinate the claims of all parties through your auto insurance provider. This means you’ll receive your reimbursement quickly and be back on the road in no time without waiting for a lengthy claims process.
While technically, there is usually one party at fault when there is an accident; no fault insurance provides a variety of benefits to all parties. It allows someone to receive accident benefits whether they are at fault or not and helps speed up the process.
Hire an Insurance Broker
Finding appropriate auto insurance can be overwhelming since there are several auto insurance companies across Ontario that you can choose from. With your new knowledge about no-fault insurance, it’s important to find an auto insurance broker that understands the ins and outs of this type of system.
An insurance broker is a trusted advisor who can assist you in finding an auto insurance policy that works for you. They’ll shop around on your behalf and present you with various options that fit your budget. They should be able to answer all your questions about how their claims process works and how quickly you’ll be reimbursed. Ultimately, they’ll help you find the right coverage for your unique situation and needs.
At Keller & Associates, our team of insurance brokers is highly knowledgeable and experienced. They can help you find auto insurance options that fit your life. Get in touch to begin the process of securing the right auto insurance protection.