If you’re an Ontario resident involved in a motor vehicle accident (“MVA”) while traveling – whether in Canada of the United States – you might wonder whether your auto insurance will cover you. The good news is that Ontario’s standard auto insurance policy includes protection that travels with you throughout Canada and the United States, but there are important nuances you should understand to ensure you’re protected and know what to expect. Here’s what you need to know before you set off on your next road trip.
Does my Ontario auto insurance cover me for MVAs that occur outside Ontario?
Yes. Your Ontario auto insurance policy (the Ontario Automobile Policy or OAP 1) will cover you for MVAs in Canada and the continental United States.
What types of insurance coverage will apply if I am injured?
Your Ontario policy will typically respond with the following protections:
1. Accident Benefits
Accident benefits, also called “no fault benefits” are available regardless of who is at fault for an MVA. Even if you are involved in a single vehicle accident or you are at fault for the MVA, you are still entitled to the following types of accident benefits:
- Medical and rehabilitation expenses
- Income replacement benefits
- Attendant care
- Funeral expenses (in fatal cases)
- Visitor expenses (for certain family members)
- Out-of-pocket expenses (such as ambulance fees and certain costs incurred while you are in hospital)
You’re entitled to these accident benefits under Ontario law, even if the accident occurs in another province or state.
If you are injured outside of Ontario, you will have to choose whether to apply for accident benefits under the Ontario system or the accident benefits system of the jurisdiction in which your MVA occurs. Different jurisdictions have different types and different limits of available benefits, and once you make the election to choose which accident benefits system you are applying under, you cannot change your mind. For this reason, even if you are injured out-of-province, you should speak to a knowledgeable Ontario personal injury lawyer as soon as possible, before you complete your accident benefits election.
2. Third Party Liability Coverage
The third party liability coverage in your Ontario auto policy will respond to protect you if someone makes a claim against you for injuries they suffered in the MVA. Your Ontario policy will meet the minimum liability coverage requirements in the jurisdiction where the MVA happened, even if those limits are higher than Ontario’s $200,000 minimum.
3. Uninsured Automobile Coverage
If you’re hit by an uninsured, under-insured or unidentified driver, the other driver doesn’t have adequate (or any) insurance to respond to a lawsuit if you are injured and pursue legal action. The Family Protection Coverage endorsement in your Ontario auto insurance policy will respond in a lawsuit and provide you with compensation up to your own policy limits.
What about cross-border lawsuits?
In most Canadian provinces and many US states, you can bring a lawsuit if you are seriously injured in an MVA and someone else is at fault.
The legal principle of lex loci delecti (‘the law of the place of the wrong’) states that the substantive law that applies in a lawsuit is the law of the place where the MVA occurred. That means that the law of the place where your MVA occurred will determine your rights and obligations in a lawsuit, including who can bring a lawsuit, the limitation period to start a lawsuit, the types of things that can be claimed in a lawsuit and the legal principles governing how liability and damages are determined.
Even though the general rule is that the substantive law of another jurisdiction will govern a lawsuit, there can be reasons to start a lawsuit in Ontario. Where and when to start a lawsuit is a fact-specific exercise and it’s important to consult an experienced personal injury lawyer with knowledge of cross-border claims to advise you of your rights.
It’s also possible that you may start one lawsuit in another province or US state while still bringing an accident benefits claim under the Ontario system and advancing a separate claim in Ontario against your own insurer under the Family Protection Coverage endorsement in your policy.
What to do after an out-of-province accident
Being in a car accident outside Ontario can raise unique legal and insurance challenges. You will have to make important decisions about which accident benefits system to elect and when and where to start a lawsuit.
As soon as possible after an MVA, you should speak with an Ontario personal injury lawyer to understand your rights and the best course of action for you to take.
Lara Fitzgerald-Husek
As a partner at Oatley Vigmond, Lara Fitzgerald-Husek uses her empathy, creativity, and trial experience to connect with her clients and help them move forward after trauma. Lara focuses her practice solely on personal injury, and she is determined to get her clients the best possible outcome—the one they deserve.