The increase in your auto insurance premium after an accident in Ontario can vary significantly based on several factors.

1. Fault: In Ontario, the fault determination after an accident is regulated by the provincial government. Insurance companies use these rules to determine who is at fault. If you’re found to be 0% at fault, your premiums shouldn’t increase due to the accident. However, if you are found to be partially or fully at fault, your premiums could increase.
2. Your Insurance History: If it’s your first at-fault accident, and you have a previously clean driving record, the increase might be less severe than if you’ve had multiple accidents or traffic violations in the past.
3. Your Insurance Coverage: If you have accident forgiveness on your policy, your rates might not go up after your first at-fault accident. However, this usually requires you to have been accident-free for a certain period before the incident.
4. The Severity of the Accident: Major accidents, especially those resulting in significant claims or bodily injury, might cause a more substantial rate increase than minor fender benders.
5. Insurance Company’s Policies: Different insurance companies have different policies on rate increases after accidents. Some may have more lenient policies, while others might be stricter.
6. Other Factors: Things like your age, location, vehicle type, and overall driving history can also play a role in how much your insurance increases after an accident.

As a general idea, some people see increases of 10% to 30% after an at-fault accident, but it can be higher or lower based on the factors mentioned above.

Should I Switch Insurance Companies After an Accident?

Whether you should switch insurance companies after an accident depends on several factors. Here are some considerations to help you make an informed decision:

1. Premium Increase: If your current insurance company significantly raises your premium after an accident, especially if you believe the increase is disproportionate to the nature of the accident, you might want to shop around to see if another company offers a better rate.
2. Customer Service: The way your insurance company handles your claim can be telling. If you’re unsatisfied with their service, responsiveness, or the way they treated you during the claims process, you might consider switching.
3. Coverage Offered: Ensure any new company you’re considering provides the same (or better) coverage for the price. Sometimes a lower rate might come with reduced coverage, which might not be ideal for your needs.
4. Loyalty Discounts: If you’ve been with your current insurer for many years, you might be receiving loyalty discounts. Switching companies could mean losing these discounts. However, the potential savings from another company might still outweigh this loss.
5. Accident Forgiveness: Some insurance companies offer accident forgiveness for their long-term policyholders, meaning your first at-fault accident won’t result in a premium increase. If your current company offers this and you haven’t used it yet, it’s a factor to consider.
6. Switching Costs: Some insurance policies might have fees associated with canceling before the renewal period. Ensure any savings from switching are not negated by these potential costs.
7. Reputation of the New Insurer: Before switching, research the prospective insurance company. Look into their customer service reviews, claim handling reputation, financial stability, and any other factors important to you.
8. Ask for a Review: Before making the switch, consider talking to your current insurance agent or company. Explain your concerns, especially if they’re about the premium increase. They might be willing to review your policy or offer discounts to retain you as a customer.

Car Insurance Rate Increase After an Accident in Canada

Here are the estimated average costs of auto insurance after an accident in Canada per year and per month broken down by province, city, driver profile, and the percentage increase in cost after the accident compared to before the accident:

Province: Ontario

• City: Toronto
  • Driver Profile: 30-year-old male with a clean driving record and a 2019 Toyota Camry
  • Average Annual Cost before accident: $1,500 – $1,800
  • Average Annual Cost after accident: $2,500 – $3,000
  • Average Monthly Cost before accident: $125 – $150
  • Average Monthly Cost after accident: $210 – $250
  • Percentage Increase: 67% – 72%
• City: Ottawa
  • Driver Profile: 35-year-old female with one at-fault accident in the past three years and a 2018 Honda Civic
  • Average Annual Cost before accident: $1,800 – $2,200
  • Average Annual Cost after accident: $2,800 – $3,500
  • Average Monthly Cost before accident: $150 – $185
  • Average Monthly Cost after accident: $235 – $290
  • Percentage Increase: 27% – 38%
• City: London
  • Driver Profile: 40-year-old male with one at-fault accident in the past five years and a 2015 Ford F-150
  • Average Annual Cost before accident: $2,200 – $2,700
  • Average Annual Cost after accident: $3,000 – $3,800
  • Average Monthly Cost before accident: $185 – $225
  • Average Monthly Cost after accident: $250 – $320
  • Percentage Increase: 11% – 37%

Province: Alberta

• City: Calgary
  • Driver Profile: 25-year-old male with two at-fault accidents in the past three years and a 2020 Nissan Altima
  • Average Annual Cost before accident: $2,500 – $3,100
  • Average Annual Cost after accident: $3,500 – $4,500
  • Average Monthly Cost before accident: $210 – $260
  • Average Monthly Cost after accident: $290 – $375
  • Percentage Increase: 29% – 38%
• City: Edmonton
  • Driver Profile: 45-year-old female with one at-fault accident in the past five years and a 2016 Toyota RAV4
  • Average Annual Cost before accident: $2,300 – $2,800
  • Average Annual Cost after accident: $3,200 – $4,000
  • Average Monthly Cost before accident: $190 – $235
  • Average Monthly Cost after accident: $270 – $335
  • Percentage Increase: 23% – 30%
• City: Red Deer
  • Driver Profile: 30-year-old male with a clean driving record and a 2019 Honda Civic
  • Average Annual Cost before accident: $1,800 – $2,200
  • Average Annual Cost after accident: $2,800 – $3,500
  • Average Monthly Cost before accident: $150 – $185
  • Average Monthly Cost after accident: $235 – $290
  • Percentage Increase: 27% – 38%

Province: Quebec

• City: Montreal
  • Driver Profile: 35-year-old female with one at-fault accident in the past three years and a 2018 Mazda CX-5
  • Average Annual Cost before accident: $1,200 – $1,500
  • Average Annual Cost after accident: $1,800 – $2,200
  • Average Monthly Cost before accident: $100 – $125
  • Average Monthly Cost after accident: $150 – $185
  • Percentage Increase: 33% – 46%
  • City: Quebec City
    • Driver Profile: 40-year-old male with one at-fault accident in the past five years and a 2015 Chevrolet Malibu
    • Average Annual Cost before accident: $1,400 – $1,700
    • Average Annual Cost after accident: $2,100 – $2,600
    • Average Monthly Cost before accident: $115 – $140
    • Average Monthly Cost after accident: $175 – $215
    • Percentage Increase: 24% – 36%
  • City: Sherbrooke
    • Driver Profile: 25-year-old male with two at-fault accidents in the past three years and a 2020 Hyundai Elantra
    • Average Annual Cost before accident: $1,600 – $2,000
    • Average Annual Cost after accident: $2,400 – $3,000
    • Average Monthly Cost before accident: $135 – $165
    • Average Monthly Cost after accident: $200 – $250
    • Percentage Increase: 20% – 33%
• Province: Nova Scotia
  • City: Halifax
    • Driver Profile: 45-year-old female with one at-fault accident in the past five years and a 2016 Subaru Outback
    • Average Annual Cost before accident: $1,200 – $1,500
    • Average Annual Cost after accident: $1,800 – $2,200
    • Average Monthly Cost before accident: $100 – $125
    • Average Monthly Cost after accident: $150 – $185
    • Percentage Increase: 20% – 46%
  • City: Sydney
    • Driver Profile: 30-year-old male with a clean driving record and a 2019 Kia Forte
    • Average Annual Cost before accident: $1,500 – $1,800
    • Average Annual Cost after accident: $2,200 – $2,800
    • Average Monthly Cost before accident: $125 – $150
    • Average Monthly Cost after accident: $185 – $235
    • Percentage Increase: 23% – 57%

  Note: These are estimates only, and the actual cost of auto insurance after an accident will depend on a variety of factors, including the specific circumstances of the accident and the individual insurance provider. It’s always recommended to obtain quotes from multiple providers and compare coverage options to find the best policy for your specific needs.

How Can I Lower My Car Insurance After an Accident?

If you’ve had an accident and are based in Ontario, there are still several strategies you can consider to potentially lower your car insurance premiums or mitigate the impact of a rate increase:

1. Accident Forgiveness: If you have accident forgiveness as part of your policy, your insurer might not raise your rates after your first at-fault accident. If you don’t have it, consider adding it when you renew, especially if you feel you might be at risk of future accidents.
2. Bundle Insurance: If you have various insurance needs (e.g., home, auto, life), bundling them with one insurer might qualify you for a discount.
3. Increase Deductible: By choosing a higher deductible, you take on more of the risk, which can lead to a lower premium. Just make sure you can afford the deductible if you need to make a claim.
4. Discounts: Ask your insurance company about any discounts you might qualify for, like multi-car discounts, anti-theft device discounts, or winter tire discounts (which some insurers in Ontario offer).
5. Defensive Driving Course: Taking a certified defensive driving course can sometimes help reduce your premium, as it shows your commitment to safe driving.
6. Review Coverage: If you’re driving an older car, consider whether you still need collision or comprehensive coverage. Sometimes the cost of the coverage and your deductible may be close to the value of the car.
7. Shop Around: Prices can vary significantly between insurance providers. By getting quotes from multiple companies, you might find a better rate elsewhere. Remember, though, to compare like-for-like coverage.
8. Limit Coverage: If you have additional coverages like rental car coverage or roadside assistance and feel they’re unnecessary, consider dropping them to lower your premium.
9. Pay Annually: Some insurance companies offer discounts if you pay your premium annually instead of monthly.
10. Drive Safely: While this won’t have an immediate impact, maintaining a clean driving record from now on will be beneficial in the long run. The longer you go without another accident or violation, the more likely your rates will decrease.
11. Speak with a Broker: Insurance brokers can help you find the best rates available because they work with multiple insurance companies. They might be aware of discounts or companies that you haven’t considered.
12. Usage-Based Insurance: Some insurance companies in Ontario offer usage-based insurance programs where you install a device in your car or use an app that monitors your driving habits. Safe driving habits can lead to discounts.

How much does insurance go up after a minor accident

1. Location: Insurance regulations and market conditions can vary by state, province, or country. Some regions may have guidelines or restrictions on how much insurers can raise rates after an accident.
2. At-Fault vs. Not At-Fault: If you’re deemed not at fault for the accident, your rates may not increase at all or might increase by a smaller amount. However, if you’re at fault, even for a minor accident, you could see a more significant jump.
3. Your Driving History: A driver with a previously clean record might see a smaller increase compared to someone with multiple past infractions or claims. For some, it might be their first accident, leading to a 10% to 20% increase, but for others with a history of claims, it could be higher.
4. Insurance Company: Different insurance companies have different rate structures and policies regarding claims. Some might have a minimal increase for a first minor accident, while others might have more substantial rate hikes.
5. Accident Forgiveness: Some insurance policies have an “accident forgiveness” feature where your first at-fault accident won’t result in a premium increase. If you have this in your policy and haven’t used it before, a minor at-fault accident might not affect your rates.
6. Nature of the “Minor” Accident: The term “minor” can be subjective. An accident with no injuries and minimal damage to vehicles might have less impact on rates than one with slight injuries or higher property damage costs, even if both are considered “minor.”

On average, drivers often see rate increases of anywhere from 10% to 30% after an at-fault accident, but this is a general range, and the actual increase for a minor accident could be on the lower end or even outside of this range.

Can I Switch Insurance Companies in The Middle of a Claim?

Yes, you can switch insurance companies in the middle of a claim, but there are important considerations and potential complications to be aware of:

1. Existing Claim: Your current insurance company will still handle the claim you’ve filed with them, even if you switch to a new insurer. The claim will be processed according to the terms of the policy you had in place at the time of the incident.
2. No Impact on Current Claim: Switching insurers won’t speed up, slow down, or otherwise impact the outcome of your existing claim. The original insurer is obligated to handle the claim as they normally would.
3. Potential for Higher Rates: If the claim you’re filing is at-fault, and it gets settled after you’ve switched to a new insurance company, the new company may adjust your rates or classify you as a higher risk once they become aware of the settled claim.
4. Timing and Overlap: It’s essential to ensure there’s no gap in coverage when switching companies. If you cancel your old policy before the new one begins, even a single day without coverage can significantly increase your rates or make it harder to get coverage.
5. Cancellation Fees: Some insurance policies may have fees or penalties for canceling before the renewal date. Check the terms of your current policy to see if this applies.
6. Inform Your New Insurer: It’s a good idea to inform your new insurer about the pending claim. Failure to disclose it, especially if asked, could be seen as misrepresentation.
7. Claim Handling Concerns: If you’re switching companies due to dissatisfaction with how your current insurer is handling the claim, remember that the claim will still be managed to completion by the original company. Switching won’t transfer the claim to the new insurer.
8. Broker Assistance: If you’re working with an insurance broker, they can help guide you through the process of switching insurers and ensure you’re making informed decisions.

Auto Insurance Rates After an Accident FAQs

1. Will my auto insurance rates go up after an accident in Ontario?

Answer: Yes, it’s possible. If you are found to be at fault or partially at fault for an accident, your auto insurance premiums may increase. The amount of the increase will depend on your insurer’s policies, your driving record, and the severity of the accident.

2. Does a no-fault accident affect my insurance rates?

Answer: Ontario operates under a “no-fault” insurance system, which means that regardless of who’s at fault, each driver deals with their own insurance company for claims. However, if you’re deemed “at-fault” by your insurance company, it could still impact your insurance premiums.

3. How long will an at-fault accident affect my insurance rates?

Answer: Typically, an at-fault accident stays on your insurance record for 6 to 10 years in Ontario. The duration and its impact on your premium depend on the insurance company’s policies.

4. Can I challenge the fault determination?

Answer: Yes. If you disagree with the fault determination, you have the right to appeal. You can first talk to your insurer, and if unsatisfied, you can escalate it to the Financial Services Regulatory Authority of Ontario (FSRA).

5. Are there any discounts or ways to mitigate a rate increase after an accident?

Answer: Some insurance companies offer “accident forgiveness” as part of their policy, where your first at-fault accident might not result in an increase in premiums. Additionally, taking a certified defensive driving course may also help reduce your rates or offset the impact of an accident on your premiums.

6. If I wasn’t at fault but made a claim, will it affect my rates?

Answer: In most cases, if you are deemed not at fault and make a claim, your rates should not increase. However, making multiple not-at-fault claims in a short period might be viewed as a risk by some insurers and could potentially impact your rates.

7. How do insurance companies determine fault?

Answer: Insurance companies use the “Fault Determination Rules” set out by the Ontario government. These rules are designed to provide a consistent method of determining fault for all possible accident scenarios.

8. Should I report all accidents to my insurance company, even minor ones?

Answer: Yes, it’s generally recommended to report all accidents to your insurer, no matter how minor. Not reporting could violate the terms of your policy, especially if damages or injuries appear later.

9. Will accident benefits be affected if I’m at fault?

Answer: No, under Ontario’s no-fault system, accident benefits are available regardless of who is at fault. These can cover medical bills, rehabilitation, income replacement, and more.

10. If I get into an accident outside of Ontario, will it affect my rates?

Answer: Yes, it’s possible. If you’re deemed at fault for an accident that occurs outside of Ontario but within Canada or the U.S., it could impact your insurance rates.

11. Do all insurance companies increase rates after an accident in the same way?

Answer: No. Each insurance company has its own underwriting guidelines and methods for determining how much a premium will increase after an at-fault accident. It’s always a good idea to shop around and compare rates after an accident to ensure you’re getting the best deal.

12. How can I reduce the impact of an at-fault accident on my insurance premiums?

Answer: In addition to considering accident forgiveness and defensive driving courses, maintaining a good driving record, bundling policies (like home and auto), and raising your deductible might help reduce premiums.

13. Does the type of claim (e.g., bodily injury vs. property damage) affect how much my rate will increase?

Answer: Yes, it can. Bodily injury claims typically have a more significant impact on insurance premiums than property damage claims because they can result in larger payouts.

14. What happens if both drivers involved in an accident claim they aren’t at fault?

Answer: If there’s a disagreement about fault, insurance companies will rely on the Fault Determination Rules, evidence from the accident scene, witness statements, and any other relevant information to make a decision.

15. Will my premiums increase even if the accident was caused by poor weather conditions?

Answer: Weather conditions are considered by insurance companies when determining fault, but if you’re deemed at fault for not driving safely given those conditions, your premiums could increase.

16. If I’m involved in a hit-and-run, will my rates increase?

Answer: If you’re the victim of a hit-and-run and cannot identify the other driver, you may not be considered at fault. However, if you claim damages under your collision coverage, there’s a possibility that your rates might increase. Always report hit-and-runs to the police and your insurance company.

17. Are there differences in how accidents affect insurance rates for new drivers versus experienced drivers?

Answer: Yes, new drivers typically see a more significant increase in their insurance premiums after an accident compared to experienced drivers. New drivers are already considered higher risk by insurance companies, and an accident can exacerbate this.

18. Does the location of the accident in Ontario matter for my insurance rates?

Answer: While the location of the accident within Ontario doesn’t directly influence fault determination, where you live and drive can influence your base insurance rates. For instance, areas with higher traffic density, like Toronto, might have higher base rates than rural areas.

19. Will my rates increase if a friend or family member has an accident while driving my car?

Answer: If someone else has an accident in your vehicle and is determined to be at fault, it may impact your insurance rates since the policy is under your name. Always ensure that any person driving your car has a valid license and your permission.

20. Can I switch insurance providers after an accident?

Answer: Yes, you can switch insurance providers. However, keep in mind that the at-fault accident will be part of your driving record and will be considered by the new insurer when determining your rates.