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.
Kevin grew up outside Perth, Ontario, where his modest beginnings shaped his underdog mentality. After earning his law degree from Osgoode Hall, he practised insurance defence before joining Oatley Vigmond, where he now uses his insider experience to help clients secure the compensation they deserve.