An auto insurance system where each driver's own insurance company pays for their injuries and certain expenses regardless of who caused the accident. In Canada, provinces like Ontario, Quebec, and Manitoba use no-fault or partial no-fault systems. This approach is designed to speed up the claims process and reduce litigation costs.
Understanding no-fault insurance is important for Canadian insurance consumers because it directly affects how your coverage works and what you can expect when you need to use your insurance. This concept plays a key role in how your auto insurance policy is structured and how claims are handled in your province.
If you have questions about how no-fault insurance applies to your specific insurance needs, speaking with a licensed insurance broker can help clarify your options and ensure you have the right level of protection.
Benefits paid to you and your passengers for injuries sustained in an automobile accident, regardless of who caused the accident. In Ontario, these are known as Statutory Accident Benefits and are mandatory in every auto insurance policy. They cover medical expenses, rehabilitation costs, income replacement, and other related expenses.
A civil wrong that causes harm or loss, for which the injured party can seek compensation through the courts. In Canadian auto insurance, a tort system allows accident victims to sue the at-fault driver for damages beyond what is covered by no-fault benefits. Some provinces, like Ontario, use a modified tort system that limits the right to sue.
Coverage that pays for injuries you cause to other people in an accident where you are at fault. This includes medical expenses, lost wages, pain and suffering, and legal defence costs. In Canada, minimum bodily injury liability limits vary by province, but most brokers recommend carrying higher limits for adequate protection.
A licensed insurance broker can explain how no-fault insurance applies to your specific situation and help you find the right coverage.
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