Does Car Insurance Go Up After an Accident in Ontario? At-Fault vs Not-at-Fault Explained

In Ontario, your car insurance can go up after an at-fault accident, but insurers are not allowed to raise your premium because of an accident where you were not at fault. The deciding factor is the percentage of fault your insurer assigns under Ontario's Fault Determination Rules — not who seemed to cause the crash at the scene, and not how big the repair bill is. Below I explain how fault gets decided, what that means for your claim and your renewal, and what you can actually do about it.

Key takeaways

• A not-at-fault accident should not raise your premium under Ontario rules; an at-fault accident can, and insurers typically consider it for several years.
• Fault is assigned as a percentage using Ontario's Fault Determination Rules, so you can be partly at fault (for example 50%).
• DCPD means your own insurer pays for the share of damage you were not at fault for — but the DCPD deductible still applies to that share unless your policy carries a $0 DCPD deductible.
• Accident forgiveness, where your insurer offers it and you qualify, can protect your rate from a first at-fault claim.
• After an at-fault claim, the insurers that rate you most fairly may not be the one you're with — this is where comparing the market matters.

At-fault vs not-at-fault: why the distinction drives your rate

Insurers price your policy on how likely you are to cost them money in the future. An at-fault accident is treated as evidence of higher risk, so it can push your premium up at renewal. A not-at-fault accident is treated differently: under Ontario rules, insurers can't raise your premium for an accident in which you were not at fault.

The catch is that "fault" isn't all-or-nothing. In Ontario it is expressed as a percentage — 0%, 25%, 50%, 75% or 100% are common outcomes. If you were found partly at fault, that portion is what an insurer may look at when it rates your policy. That's why it's worth understanding how the percentage is reached before you accept it.

Ontario's Fault Determination Rules in plain English

The Fault Determination Rules are a set of standard scenarios — rear-end collisions, lane changes, intersections, parking lots, turning left across traffic and so on — each with a set percentage of fault for each driver. Your insurer's adjuster matches what happened to the closest scenario and applies the percentage. In a typical rear-end collision with both cars travelling in the same direction, for example, the rules usually place the fault on the driver who hit from behind.

Fault for insurance purposes is a separate question from whether anyone received a traffic ticket. Witness details, photos of the scene and the vehicles, and dash-cam footage all help the adjuster pick the right scenario. If you believe the wrong one was applied, ask the adjuster in writing which rule they used and why. If you still disagree, go through the insurer's complaint process; after that, the General Insurance OmbudService can review it.

DCPD and the deductible: what you actually pay

Direct Compensation – Property Damage (DCPD) is the part of an Ontario auto policy that pays for damage to your car when someone else is at fault. If the collision happens in Ontario with another insured vehicle whose driver is identified, your own insurer pays for the share of the damage you were not at fault for — covering your vehicle, its contents and loss of use for that share. DCPD does not apply to single-vehicle collisions or to an unidentified hit-and-run.

Here's the part many drivers miss: the DCPD deductible is applied to the share you were not at fault for. So even a driver who is 0% at fault generally pays the DCPD deductible in full, unless the policy has a $0 DCPD deductible. If you'd rather not have that surprise, ask me what a $0 DCPD deductible would cost on your policy.

DCPD has also been optional since January 1, 2024. If you opted out, damage you weren't at fault for has to be covered under collision or all-perils coverage instead — which means a different deductible and, if you don't carry collision, possibly no coverage for your own vehicle at all.

Accident forgiveness: what it does and doesn't do

Accident forgiveness is an optional feature many insurers offer. Where you qualify, it can stop your first at-fault accident from raising your premium with that insurer. Eligibility rules vary — insurers commonly look at how long you've been licensed and how clean your record has been — and the protection generally applies to your current insurer. It is not a guarantee that every other insurer will ignore the claim if you switch later.

If you've been claim-free for a while and don't have it, it's worth asking about at your next renewal. It's one of the cheaper ways to protect against a single bad day on the road.

Claim it or pay out of pocket?

For small, at-fault damage, some drivers choose to pay the repair themselves rather than put a claim on their record. Whether that makes sense depends on the repair estimate, your deductible and how much an at-fault claim might add to your premium over the years it's considered. A rough comparison:

• Pay yourself when: the damage is minor, no one was hurt, only your vehicle (or a cooperative other driver) is involved, and the estimate is close to your deductible.
• Claim when: anyone is injured, the other driver is claiming against you, the damage is significant, or there's any doubt about who was at fault.
• Either way: if anyone is injured or combined damage is over $2,000, the collision must be reported to police or a Collision Reporting Centre.
• Check your policy: policies have conditions about notifying your insurer of an accident even if you don't claim, so talk to me before you decide.

My step-by-step guide on what to do after a car accident in Ontario covers the scene itself — this section is about the money decision afterwards.

How long an at-fault claim affects your rate

There's no single number that applies to every insurer, but at-fault accidents are typically considered for several years when you're rated. The effect usually shrinks as the claim ages and you add claim-free years. Each insurer has its own underwriting rules, which is exactly why the same claim can be treated very differently from one company to the next.

What you can do in the meantime: keep your record clean, revisit your deductibles, check you're getting every discount you qualify for, and review usage-based programs if they fit how you drive. My guide on how to lower your car insurance in Ontario walks through each of these.

How I shop your policy after an at-fault claim

When a client comes to me after an at-fault accident, I don't just accept the renewal increase. I compare the file across the 12+ insurers I work with, because their appetites for drivers with a recent claim are not the same. Some weigh a single claim lightly for a long-tenured driver with an otherwise clean record; others are stricter. I also look at whether bundling with home insurance, adjusting deductibles or adding accident forgiveness at a new insurer changes the picture.

• I review the fault percentage and the scenario applied, and flag anything worth questioning.
• I check whether the claim was correctly recorded as at-fault or not-at-fault.
• I quote your profile with multiple insurers rather than one.
• I explain the trade-offs in plain English so you can choose, and I stay your contact at renewal.

If you drive in the city, my pages on auto insurance in Toronto and auto insurance in Markham explain what local insurers look at. If price is the priority right now, see how to find cheap car insurance in Ontario without stripping out the coverage that protects you, or start with my personal auto insurance overview.

Sources

• Financial Services Regulatory Authority of Ontario — Ontario's auto insurance regulator and the Auto Insurance Consumers' Bill of Rights.
• Insurance Bureau of Canada — consumer explanations of fault and DCPD.
• General Insurance OmbudService — independent help if you disagree with your insurer after its complaint process.
• Government of Ontario — collision reporting requirements and provincial driver information.

About this article: I'm Suneet Sharma, an independent insurance broker licensed in Ontario (R.I.B. (Ontario)), working out of downtown Toronto through Unibrokers. This article is general information about Ontario auto insurance after an accident, reviewed by a licensed broker. It isn't advice for your specific policy — wordings and underwriting rules differ between insurers, so always confirm the details of your own coverage. You can read how I write and review content in my editorial policy.