Will An Accident Benefit Claim Raise Your Insurance Rates?

If you are involved in a truck or car accident in Ontario and sustain serious injuries that prevent you from working, you may be seeking to claim accident benefits. Such benefits are available through your insurer and can cover several types of expenses during this difficult time.

However, you might be reluctant to make an accident benefits claim without knowing if this will affect your insurance premium or cause it to increase. It is important to understand which factors can impact your insurance rates and whether there is a link between accident benefit claims and higher premiums. In this article, we will explore whether such claims lead to increased insurance rates.

What Are Accident Benefits?

In the context of auto insurance in Ontario, accident benefits are the obligatory coverages within your insurance policy that extend financial support to you if you are injured in a vehicle accident. Such coverages are provided no matter who bears the fault, and a few different types are available:

Income Replacement – Income replacement accident benefits cover lost wages after you experience a serious injury that prevents you from returning to work. This benefit covers lost wages work following the first week after the illness or injury.

Medical and Rehabilitation Benefits – Rehabilitation accident benefits are available to help you recover from injuries that occur during a car accident. The benefit covers life skills training, social rehabilitation counselling, employment counselling, home modifications, and various others.

Individuals can access these accident benefits by reporting the accident, completing an accident benefits application, or an OCF-1 form, and waiting for the insurance company to approve it.

How Are Insurance Premiums Calculated?

For accident benefits such as these, insurance premiums are calculated according to your risk profile. Specific factors such as your type of vehicle, location, driving record and history are evaluated to determine the premium.

Other factors such as your claims history and your accident benefit claims, might affect the premium assessment. This is mainly because if you have a history of multiple claims or very costly ones, this might prompt the insurer to consider that you have a high risk level.

Does Filing An Accident Benefit Claim Affect Your Insurance Rates?

When you file an accident benefit claim, this does not affect your premium directly or by itself. It also does not necessarily mean that your insurance rates will become more costly. Individuals should be able to claim accident benefits without being concerned that the premiums will rise simply because of this specific claim.

But there are different types of claims that may affect your insurance rate, which include at-fault claims. At-fault claims refer to incidents in which an individual is partially or wholly responsible for causing a vehicle accident, and an insurance company will use fault determination rules to assign fault in partial fault cases.

It is important to remember that accident benefits claims are open to individuals who have been involved in an accident, regardless of fault.

What Are Some Factors that Could Influence Rate Increases?

If you bear the fault for the accident, whether that is partially or fully, your insurer will most likely consider that you are a higher risk to insure. For example, if you crash into a traffic light because you were not paying attention, although you will be able to claim accident benefits, insurers may increase your premium.

It is also important to consider that each insurer will have their own policy on the insurance rate. Some may increase the insurance rate following your claim, and the increase may be more than other insurers depending on the specific policy they offer.

What is the Impact of No-Fault Insurance in Ontario?

In situations where you are involved in a car accident in Ontario, you go through a different process compared with traditional liability insurance. Individuals need to contact their own insurance company to settle payments, such as accident benefits. This is the case no matter who is at fault.

There are some advantages to this system. For example, even if they are involved in an accident, drivers can be protected from increased rates when they make an accident benefit claim.

When Will Your Rates Likely Increase?

In addition to multiple claims or at-fault claims, there is a likelihood of your insurer increasing your insurance rate if you are involved in serious traffic offences.

Your insurance company will assess claims using a structured approach, starting by gathering police reports and medical records, witness statements and expert opinions. They review the policy to confirm limits and exclusions and then focus on determining fault through the Fault Determination Rules.

Why Legal Support Is Important During a Vehicle Accident Case

Beyond assisting individuals with accident benefit claims and optimizing their claims by handling insurer communications, legal teams such as Ristich Law work to ensure victims maximize their recovery and help clients navigate any pitfalls that could impact their benefits entitlement.

Individuals may encounter insurer disputes or delays in their assessment. They may also need to navigate the complexities of fault claims and might encounter challenges in calculating just compensation.

In such a scenario, local personal injury lawyers and law firms can investigate the accident and support you by gathering evidence and meeting deadlines for filing personal injury claims. Personal injury attorneys can also calculate the compensation owed, fight for the maximum compensation, and support your rights throughout the claim with knowledge of personal injury law.

Know Your Rights Regarding Vehicle Accidents with Case Support from Ristich Law

If you have been involved in a vehicle accident, accident benefit claims are available. Such a claim will not automatically lead to an increase in your premium. However, since other factors can have an impact, it is important to understand your insurance policy. We advise reviewing your insurance policy and consulting with your insurer to learn more.

In situations when you aim to negotiate with insurance companies, you will want to avoid insurer disputes. To navigate such a personal injury case, Ristich Law can support you. We have experience handling motor vehicle cases and can help you understand your rights. Contact us today to arrange a free consultation for your case.

Ristich Law has three conveniently located Ontario offices:

Ristich Law Personal Injury Lawyers Etobicoke

5353 Dundas Street West

Suite 200

Etobicoke, ON M9B 6H8

Ristich Law Personal Injury Lawyers Ottawa

3029 Carling Avenue

Suite 202

Ottawa, ON K2B 7K3

Ristich Law Personal Injury Lawyers Whitby

173 Brock Street North

Suite 104

Whitby, ON L1N 4H3