What Compensation Is Available for Ontario Car Accidents?

Toronto car accident lawyer explains how compensation system works.

Car accidents are common in Ontario. Each year, drivers are involved in 36,000 accidents on average, according to Transport Canada. That’s one accident every 14 minutes. And in many cases, many collisions cause serious injuries or fatalities. Specifically, all those accidents resulted in 118,853 injuries, 8,851 serious injuries and 1,931 car accident fatalities in Ontario in 2022, according to the most recent Transport Canada statistics.

When these Ontario car accidents happen, injury victims are often eligible to receive financial compensation for their accident-related expenses. But how does the system work? What financial compensation can car accident injury victims receive in Ontario? Who decides how much they get? And what happens if car accident compensation is denied? Our Toronto car accident lawyers at Smitiuch Injury Law explain.

How does car accident liability work in Ontario?

Liability is a legal term used to describe who is legally responsible for paying for a financial loss because of their negligent or reckless actions. In terms of car accidents, liability refers to who’s legally responsible for paying for all accident-related expenses.

In Ontario, liability in car accidents functions based on a “no-fault” insurance system. This doesn’t mean no one is at fault. Instead, each driver’s insurance covers their own accident benefits, regardless of who caused the collision. Ontario’s no-fault insurance structure, outlined in the Ontario Insurance Act, allows accident victims to seek compensation for medical expenses and loss of income through their own insurance provider.

However, in cases of more serious injuries or high expenses, victims can pursue compensation and take legal action against the at-fault driver. This is often referred to as a “tort claim.” The ability to file a lawsuit or pursue a tort claim allows injury victims to seek compensation for pain and suffering and other non-economic damages. Proving liability (who was at fault) in such cases can be crucial in obtaining compensation for serious injuries.

Who decides who’s at fault for causing a car accident in Ontario?

If you are making an accident benefits claim, it does not matter who is at fault. If you bring a lawsuit, you will need to establish that the other driver is at least partially at fault for your accident. An experienced lawyer can help you establish this.

Can I receive compensation for my Ontario car accident if I’m partially at fault?

Yes, you can still receive compensation if you’re partially at fault for causing an Ontario car accident. Ontario follows a “contributory negligence” system, meaning compensation is adjusted based on each party’s level of fault. For example, if you’re found to be 25% at fault, your compensation from the at-fault driver’s insurance could be reduced by that percentage and you would only receive 75% of your full compensation amount.

This is why it’s crucial to work with a lawyer if you believe insurance companies might assign partial fault for causing the collision. Often, insurance companies will try to increase your percentage of fault to minimize their payout.

However, regardless of who was at fault, accident victims can still access Statutory Accident Benefits from their own insurance provider (explained in more detail below). This means you should still be able to receive compensation for medical expenses and loss of income, regardless of who was at fault.

What car accident expenses can I be compensated for in Ontario?

In Ontario, car accident victims can receive compensation for various expenses through Statutory Accident Benefits and, if applicable, a tort claim against the at-fault driver. Common compensable expenses can include money for:

Medical expenses: Covers rehabilitation, prescriptions and other treatment costs.
Loss of income: Replaces a portion of lost wages if injuries prevent you from working.
Housekeeping and home maintenance: Assistance for essential tasks if injuries limit mobility.
Attendant care: Covers costs for caregivers if you need assistance with daily activities.
Pain and suffering: Compensation for physical and emotional distress (available in tort claims).

Each car accident case is unique. This is why consulting with a lawyer is so important. A lawyer can help you better understand the full scope of expenses eligible for compensation based on your injuries and the circumstances of your accident.

What is Ontario’s minor injury guidelines (MIG)?

The Minor Injury Guidelines (MIG) in Ontario classify certain injuries as “minor” and limit the amount of compensation available for these injuries. Under MIG, minor injuries include soft tissue injuries like sprains, strains, and whiplash. The MIG cap limits medical and rehabilitation benefits to a maximum of $3,500, regardless of the actual costs of treatment.

The MIG is intended to streamline claims for minor injuries, but it can be restrictive for accident victims who need more extensive treatment. In cases where injuries worsen or are initially misclassified, a lawyer can help argue for a reclassification of the injury to access higher compensation limits.

If you get hurt in a car accident, you should receive the medical care you need to fully recover. If Ontario’s MIG rules prevent you from getting the medical treatment you deserve, your lawyer can present evidence in support of your injury claim and fight for the compensation you deserve.

Will Ontario’s MIG rules impact how much money I get for my car accident?

Yes, Ontario’s MIG rules can significantly impact the compensation you receive if your injuries are classified as “minor.” The $3,500 cap under MIG may not cover all necessary medical treatments, forcing accident victims to pay for additional out-of-pocket expenses themselves. This cap can be particularly challenging for individuals who initially appear to have minor injuries but later require more extensive medical care.

A lawyer can assist in challenging a MIG classification by gathering medical evidence to demonstrate that the injuries exceed the minor threshold set out by the MIG. Proving that injuries fall outside of the MIG can open access to higher benefit limits, ensuring that accident victims receive the support they need for their recovery.

What are Statutory Accident Benefits (SABS) in Ontario?

The Statutory Accident Benefits Schedule (SABS) provides mandatory benefits to all car accident victims in Ontario, regardless of fault. These benefits cover medical expenses, rehabilitation, and lost income, helping injured individuals receive the financial compensation they deserve after an accident. SABS is regulated by the Financial Services Regulatory Authority of Ontario (FSRA), which oversees benefit entitlements and claims.

SABS benefits include income replacement, non-earner benefits, medical and rehabilitation expenses, and more. Each category has specific limits and eligibility requirements, making it essential for accident victims to understand what they’re entitled to under Ontario law. Consulting a lawyer can help injury victims better understand their SABS benefits and maximize compensation within the regulatory framework.

Will Ontario’s SABS rules influence how much money I get for my car accident?

Yes, Ontario’s SABS rules play a central role in determining the amount of compensation you receive after a car accident. SABS limits the benefits available based on the severity of injuries and other eligibility factors. For example, income replacement benefits cover up to 70% of gross income, with a maximum of $400 per week, which may not fully compensate for higher wage earners.

In cases of catastrophic injuries, SABS provides higher benefit caps. However, accident victims often need legal assistance to navigate the complex SABS rules and gain access to the full range of benefits. A lawyer can help with benefit applications, disputes and maximizing compensation based on individual circumstances.

What is the average car accident settlement in Ontario?

The average car accident settlement in Ontario depends on various factors, including injury severity, fault and the specific insurance policies involved. Typical settlement ranges can include:

Minor injuries: For injuries classified as minor under Ontario’s Minor Injury Guidelines (MIG), settlements may be modest, often in the low thousands, due to the $3,500 cap on benefits.
Severe injuries: Cases involving fractures, significant soft tissue damage, concussions, or other mild traumatic brain injuries (TBIs) generally result in higher settlements, often ranging from tens of thousands to over $100,000.
Catastrophic injuries: For catastrophic injuries as defined by Ontario’s Statutory Accident Benefits Schedule (SABS), such as severe traumatic brain injuries or paralysis, settlements can exceed $1 million to cover lifelong medical care and rehabilitation needs.

While such numbers can be helpful, they should only be used for informational purposes. Each car accident is unique. As a result, how much money your accident is worth could be very different from a similar accident. This is why consulting with a lawyer can help provide a better estimate for your settlement based on the specific circumstances of your case. In particular, your lawyer should have an in-depth understanding of Ontario’s Insurance Act and Statutory Accident Benefits Schedule (SABS), which often serve as a guide for these settlement structures.

How does compensation work for medical expenses in Ontario?

Medical expenses are covered under Ontario’s no-fault insurance system and primarily provided through SABS benefits, regardless of fault. Here’s how it works:

Basic medical and rehabilitation benefits: For minor injuries (under MIG), there’s a $3,500 cap for medical and rehabilitation expenses.
Non-minor injuries: For injuries classified as severe, such as fractures or head injuries, accident benefits may cover up to $65,000 over five years.
Catastrophic injuries: Catastrophic injuries, such as major brain injuries or severe impairments, allow up to $1 million in medical and rehabilitation benefits for long-term medical care.

Your insurance typically covers these benefits. However, additional compensation can be pursued through a tort claim if another driver is at fault and expenses exceed your SABS limits. Speaking with a lawyer who understands Ontario’s Statutory Accident Benefits Schedule (SABS) and Ontario’s Insurance Act can help clarify specific entitlements.

Can I get compensation for lost income after a car accident?

Yes, accident victims in Ontario can receive compensation for lost income if their injuries prevent them from working. Loss of income benefits are determined as follows:

Income replacement benefits: Under SABS, eligible victims receive up to 70% of their gross weekly income, capped at $400 per week. Optional insurance policies may provide higher caps.
Additional tort claims: If the at-fault driver’s negligence resulted in significant financial losses beyond the standard income replacement benefits, victims may file a tort claim (lawsuit) seeking additional financial compensation.
Self-employed workers: For self-employed individuals, income replacement benefits require additional documentation of income, expenses, and lost work opportunities.

Replacement income benefits are regulated by Ontario’s Statutory Accident Benefits Schedule (SABS). And what you might not realize is such benefits are available to employed and self-employed accident victims. Whatever the circumstances of your work status, make sure you fully understand your legal options. Schedule an appointment with a lawyer as soon as possible.

Who decides if I receive compensation for my Ontario car accident?

Several parties often play a role in determining whether you receive compensation for a car accident in Ontario:

Insurance adjuster: Initially, your insurance adjuster reviews your claim based on the Statutory Accident Benefits Schedule (SABS) and determines eligibility for benefits.
Fault determination by insurance companies: Fault for the accident is assigned based on Ontario’s Fault Determination Rules, which can impact compensation from the at-fault driver.
Licence Appeal Tribunal (LAT): If there’s a dispute, the LAT can review your case and make a final determination on benefit eligibility, coverage, and compensation amounts.

The good news is you can be included in these important discussions. The best way to do so is by hiring a lawyer. Your lawyer can guide you through the decision-making process, helping to secure the compensation you’re entitled to under Ontario law.

What are my legal options if my car accident claim is denied?

If you are denied compensation for your Ontario car accident, you have several options to challenge the decision and pursue the compensation you deserve:

File a dispute with the insurance company: Start by discussing the denial with your insurer, as it may be possible to resolve the issue through negotiation or additional documentation.
Apply for mediation through the Licence Appeal Tribunal (LAT): The LAT is Ontario’s tribunal for resolving disputes related to accident benefits. Mediation is often the first step, and if unresolved, the case may proceed to a hearing.
File a tort claim against the at-fault driver: If the accident was due to another driver’s negligence, you can file a lawsuit for additional damages, which is financial compensation. Damages in a lawsuit often include compensation for pain and suffering, loss of income, and excess medical costs that were not covered under the Statutory Accident Benefits.

Hiring a lawyer can help make sure you understand these options and pursue the best course of action based on your unique case.

Can I sue the other driver who caused my car accident?

The short answer? Yes. However, filing a lawsuit against another driver in Ontario can often be very challenging from a legal standpoint. In Ontario, you may file a tort claim against the at-fault driver in cases of significant injury or financial loss. In order to take legal action, the following conditions often need to apply:

Proving fault: You must demonstrate that the other driver’s negligence directly led to the accident and your injuries. Police reports, eyewitness statements and expert testimony can support your claim.
Threshold requirement: Ontario law requires injuries to meet a certain “threshold” to be eligible for pain and suffering compensation. This typically means injuries that result in a permanent and serious impairment of an important physical function, mental function, or psychological function.
Compensation scope: Through a tort claim, you may seek compensation for pain and suffering, loss of future earnings and additional medical expenses not covered by SABS.

Navigating your way through Ontario’s legal system after a serious car accident can be confusing and overwhelming. The Insurance Act and SABS guidelines dictate the criteria and eligibility for such claims. Consulting with a lawyer can help you better understand the strength of your case and all your available legal options.

Can I get money for pain and suffering for a car accident?

Yes, Ontario accident victims may receive compensation for pain and suffering, but specific conditions often need to apply, including:

Threshold requirement: To qualify, your injuries must result in a serious and permanent impairment of important physical, mental, or psychological functions.
Deductible: For non-catastrophic injuries, Ontario applies a deductible on pain and suffering awards, which may reduce the compensation amount significantly.
Catastrophic injury exception: If you sustain a catastrophic injury, such as a severe brain injury or loss of limb, the deductible may not apply, allowing for full compensation.

Pain and suffering claims are regulated by Ontario’s Insurance Act. A lawyer can help calculate the deductible and eligibility for these damages.

Why should I hire an Ontario car accident lawyer?

Hiring an Ontario car accident lawyer can often make a significant difference in navigating the complex process of obtaining fair compensation after an accident. Ontario’s no-fault insurance system and strict rules under the Statutory Accident Benefits Schedule (SABS) and the Minor Injury Guidelines (MIG) can limit the compensation you receive, particularly if injuries are classified as “minor.” A skilled car accident lawyer can assess the details of your case, help challenge restrictive classifications and work with you to maximize your claim by identifying all available benefits.

An experienced lawyer also understands how fault determination works and proving liability in cases where another driver is responsible. From negotiating with insurance companies to handling all the paperwork and deadlines, a lawyer provides essential support in such situations. Your lawyer can also demand maximum compensation for medical expenses, loss of income, pain and suffering and other financial losses while you focus on what matters most – your recovery.

This is why you should talk to a Toronto car accident lawyer at Smitiuch Injury Law right away. We have years of experience handling complex legal cases in Ontario involving serious car accidents. As a result, we have an in-depth understanding of how the legal system works in the province.

Get the Toronto law firm that knows how to handle complex legal cases. Contact us and schedule a free consultation with a Toronto car accident lawyer you can trust. Our law firm has three offices conveniently located in Toronto, Brantford and Simcoe, Ontario. We can explain your rights and all the legal options available to you. That way, you can make informed decisions about what to do after your accident.

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