What Is No-Fault Insurance And How Does It Apply In Ontario?

Strictly speaking, the no-fault automobile insurance is used to describe a system of insurance regulations where the victim of the accident is injured or his or her car is damaged as a result. In this situation, they are capable of making a claim towards their own insurance company, regardless of who was the “at-fault” party in the accident. Not all countries employ this particular set of regulations and in certain ones you have to direct your claim only towards the one who is found responsible for the accident.

In Ontario, however, there is a specific set of rules in the Insurance Act which are labeled “Rules of Fault Determination” and this particular rule is enacted there.

Being Entitled To No-Fault Benefits

It’s easier to exemplify things with a simple situation. You’ve been involved in an accident which got your car significantly damaged. However, it was caused by your own negligent behavior – you failed to follow some of the rules set forth in the Highway Traffic Act and you caused the accident. The insurance policy that you have for your automobile is going to cover the damages of your vehicle to a certain extent which usually depends on the insurance plan that you’ve gone for. If you have sustained any damages, the insurance policy is going to be handling those as well.

Fault Isn’t Assigned At All?

That’s not true. Even though the fault is not a determining factor when the compensation is paid out, it’s going to have a significant impact for your relationships with the insurance company for the upcoming future. You will be obligated to pay higher premiums which are going to be according to the gravity of the damages and the amount of monetary compensation that the insurance had paid out. This is due to the fact that your risk factor as a driver has increased and your insurance policy becomes more expensive. It’s as simple as that.

However, you shouldn’t think that just because you have an effective insurance policy, the company is going to be paying you out premiums just like that. You will be given to deal with an insurance adjuster and he will do anything that he can in order to reduce the amount of the settlement. This is how insurance companies make money. So, with this in mind, you need to respond similarly. Finding a skilled personal injury lawyer with a lot of experience is definitely going to help you out tremendously and it’s something that you need to take into proper consideration. With this in mind, this is the way to ensure that you get the compensation that you are legally entitled to.

There are many lawyers willing to work with you on contingency basis, which ensures that you can avail legal assistance at no upfront cost. You only pay them when they help you win the compensation.