I Got in a Car Accident Driving Someone Else’s Car, Will They Cover Me?
I frequently get asked questions from potential clients regarding which insurance company will be responsible for paying no-fault accident benefits. Intuitively, we may think that if we were driving someone else’s car, then their insurance company would be responsible for paying benefits. However, this may not be the case.
The Insurance Act and Ontario Regulation 283/95 sets out a priority system or hierarchy over who must pay benefits in the event a person is involved in a motor vehicle accident.
The general priority is as follows:
- The claimant’s own insurance policy.
- The insurer of the vehicle the claimant was in.
- The insurer of any other vehicle involved in the accident.
- The Motor Vehicle Accident Claims Fund.
While this priority system may seem simple, small changes in a scenario can vary significantly who might be required to pay.
Take the example of being involved in a collision while driving a friend’s vehicle with their permission. If you have you are insured under another policy (ie. you own a vehicle or otherwise covered by an automobile insurance policy), then your own insurer would pay benefits.
In the event that you were not covered by an insurance policy, the policy covering the vehicle you were driving would be responsible for paying benefits. However, in the event that your friend’s vehicle was somehow not covered (ie. their policy was cancelled for non-payment), then the insurer for the other vehicle involved in the collision would be responsible for paying your accident benefits.
Finally, in the event that you were involved in a single vehicle accident and there was no other insurance coverage, the Motor Vehicle Accident Claims Fund can step into provide insurance coverage. The Motor Vehicle Accident Claims Fund is a government run body and considered the “insurer of last resort” for those involved in motor vehicle accidents where there is no other insurance.
Automobile insurance in Ontario is exceptionally complicated. If you have been injured in a motor vehicle accident, the team at Oatley Vigmond can help sort out your insurance entitlements.
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The son of a grocery store clerk, Kevin grew up outside of Perth, Ontario. He credits his humble beginnings with the development of his underdog mentality, an approach he has carried into his legal career.
He attended McMaster University for two years before being granted early admission to Osgoode Hall Law School. After being called to the bar in 2008, Kevin began practising law in Hamilton before joining a leading Toronto litigation firm, representing Canada’s largest insurance companies on personal injury actions. “I didn’t find it fulfilling,” Kevin recalls. “I was helping companies save money, when what I wanted to do was help the people going up against these major corporations.” Since joining Oatley Vigmond, Kevin has used his insurance-industry experience to protect his clients and recover the compensation they deserved. He’d been at Oatley Vigmond for two months when he settled a matter for a client at a mediation. “You felt the burden of the litigation, and her injuries, lifting off her. I wanted to help even more people experience the relief of having their uncertainty lifted.’”