How an at-fault accident affects car insurance in Canada, and when to pay a repair yourself

In Canada, fault in a car accident is usually decided by provincial fault determination rules, not by a police report or by who apologized, and an at-fault claim typically raises your premium or lowers your discount for several years (many Ontario insurers look back six years). In Ontario, an insurer may not raise your premium for an accident in which you were not at fault. Because the surcharge can cost more than the repair, it can make sense to pay a small at-fault repair yourself, but only after you have reported the accident as your policy requires and asked how a paid claim would be rated.

This guide explains how fault is assigned, how claims show up in your history, and how to do the arithmetic. Figures are illustrative.

How fault is decided

Province	How fault is assigned for property damage between insurers
Ontario	Fault Determination Rules (a regulation under the Insurance Act) with diagrams of common situations; percentages such as 0%, 50% or 100%
Quebec	Industry fault rules under the direct compensation agreement (Convention d'indemnisation directe)
Alberta, Atlantic provinces	Each province's fault determination regulations or rules used for claims
BC, Saskatchewan, Manitoba	The public insurer assesses responsibility under its own rules

Fault for insurance rating is separate from traffic charges and from civil liability in a lawsuit, although they often line up. If you disagree with a fault assessment, ask the insurer which rule it applied and why; see complaints and disputes.

How long a claim affects your price

There is no single national rule. Typical patterns:

Private insurers commonly rate at-fault claims for about six years in Ontario; practices vary elsewhere.
Public plans move you down their discount scales: ICBC's driver-based discount, SGI's Safe Driver Recognition and MPI's Driver Safety Rating. Climbing back takes claim-free years.
Partial fault (for example 50%) may be rated as at-fault by some insurers.
Not-at-fault claims: in Ontario they cannot be used to raise your premium. Elsewhere, ask.

Your claims history follows you between insurers through industry databases: AutoPlus (Insurance Bureau of Canada) outside Quebec and the Fichier central des sinistres automobiles in Quebec. You can request your own report and ask for errors to be corrected.

Accident forgiveness

Many insurers offer accident forgiveness (in Ontario, OPCF 39, the accident rating waiver, or an insurer's own program): your first at-fault accident does not raise your rate, subject to conditions such as years claim-free. Points to know:

It usually applies to the rate with that insurer only. If you switch, the new insurer sees the claim.
It typically covers one accident in a set period.
Some programs are included automatically after a number of claim-free years; others cost extra.

Worked example: claim or pay yourself? (illustrative)

Ontario. You back into a post: $1,600 of damage to your own car. You are 100% at fault. Collision deductible $500. Current premium $2,300.

If you claim:

Insurer pays $1,600 - $500 = $1,100.
Suppose the at-fault claim adds a surcharge of 15% for three years (insurers' surcharges and durations vary; ask yours): $2,300 x 15% = $345 a year x 3 = $1,035.
Suppose it also costs you a claims-free discount of 5% for the following three years: $2,300 x 5% x 3 = $345.
Total extra premium: $1,380, against an insurer payment of $1,100. Net cost of claiming: about $280 more than paying yourself, before allowing for the fact that rate increases compound with general rate changes.

If you pay yourself: $1,600 out of pocket; no claim payment, no surcharge.

Rule of thumb: if the insurer's payment (repair minus deductible) is less than the extra premium over the surcharge period, pay yourself. If you have accident forgiveness, the arithmetic changes in favour of claiming. Ask your insurer or broker to tell you, before you decide, how the claim would affect your rate.

When paying yourself is a bad idea

Another vehicle, person or property was involved: the other party can claim against you later.
Anyone was hurt, even slightly.
The damage may be larger than it looks (modern bumpers hide sensors and structural parts).
You are not sure who was at fault.

Reporting rules

Your policy requires notice of accidents. Provincial traffic laws also require police reports in certain cases: in Ontario, collisions involving injury or total damage over $2,000 must be reported to police, often at a collision reporting centre. Other provinces set their own thresholds. Check your provincial government's site.

Frequently asked questions

Can I see my own claims history?

Yes. Outside Quebec, request an AutoPlus report from the Insurance Bureau of Canada. In Quebec, request your record from the Fichier central des sinistres automobiles through the Groupement des assureurs automobiles.

Does a windshield claim count as at-fault?

Glass and other comprehensive claims are not collision at-fault claims, but some insurers consider claim frequency. Ask how your insurer rates them.

If I am 50% at fault, will my premium rise?

It may. Some insurers rate any at-fault percentage as an at-fault claim; others treat it differently. Ask your insurer.

Do public insurers let me pay back a claim?

Some public plans and private insurers allow you to reimburse a small claim to avoid a rating effect, within time limits. Ask yours whether that option exists.

More guides

Sources

FSRA — Ontario rules on rating and not-at-fault accidents
Ontario e-Laws — Fault Determination Rules and the Highway Traffic Act
Insurance Bureau of Canada — AutoPlus claims history reports
Groupement des assureurs automobiles — Quebec fault rules and claims file
ICBC, SGI, MPI — public plan discount scales