I have heard that Ontario has a “No Fault Automatic Insurance System”. Does this mean that accidents don affect automobile insurance rates?
No. The term no fault refers to a system under which each insurer pays for the damages to their own client’s vehicles and it also means that there is limited recourse to compensation for damages through litigation in our court system. However in every accident, “fault” or negligence is assessed and the party that is deemed to be responsible will have the accident shown against their policy. This may or may not result in an increase in premium dependant upon the rate structure and discounts that were applicable before the accident.
