Ontario has adopted a no-fault system for its car insurance. The term “no-fault” doesn’t mean that a person who causes an accident is not considered responsible for it; instead, it means that people who are injured in an accident get compensated by their own car insurance company. The individual’s own insurance company also looks after paying for the cost of repairing the vehicle.
When an accident happens, an investigation is conducted to determine which driver is at fault, and to what extent. A person who is determined to be at fault for an accident will have this fact noted on his or her driving record, and the Ontario car insurance company may charge him or her higher rates because of it.
Even if the police don’t file charges after an accident, it doesn’t mean that no one was at fault. The insurance company will still make a determination about fault, which can affect car insurance rates for the drier who was responsible for the accident.
A driver can be considered 100 percent at fault, 0 percent at fault, or any number in between the two. If the figure is anything other than zero, the accident is added to that driver’s record. Some insurance companies will not “count” a first at-fault accident and rates will not rise after the fact. Customers should contact their insurance provider to find out whether it has adopted this policy.