How Much Does Insurance Increase After an At-Fault accident in Ontario?

*This article is updated from its original version published on Dec 24, 2020

A car accident can leave you shaken, overwhelmed, confused and in some cases, it can even be life changing. While Canadian roads aren’t among the world’s deadliest, the numbers don’t paint a rosy picture either. Transport Canada’s National Collision Database reported 1,964 road fatalities in 2023, the highest in a decade, along with 9,261 serious injuries, the highest in five years. 

For Ontario drivers, the impact of a collision does not always end at the scene. Once the claim process begins, one of the biggest reasons for stress is whether the accident will be considered at fault or not, and what that could mean for insurance premiums for the drivers involved. 

Once everyone involved in the accident is declared safe, most Ontario drivers have the same concern: will my insurance go up after an at-fault accident? 

The answer depends on how much fault your insurer assigns, your past driving record, your policy, your insurer’s rating rules, the type of claim, and whether you have accident forgiveness. Ontario’s insurance system is often called “no-fault,” but that does not mean you’re absolved of fault. It still plays a major role in claims, deductibles, renewal pricing and your insurance history. 

As Kori Duff, Licensed Insurance Advisor at Surex, explains, the priority after a crash is not the premium. “First and foremost, I ask if they (clients) are OK. This is an experience that is shocking to anyone.” Her first practical advice is to contact the claims team with the driver’s insurance provider. “As their advisor, I work to help with communication between adjusters assigned and the clients.” 

This guide explains how Ontario’s at-fault accident rules work, what may happen to your premium, how accident forgiveness applies, and what to do after a collision. 

Ontario’s no-fault insurance system, explained 

A ‘no-fault’ insurance framework is simple in a way that after a crash, you typically must deal with your own insurance provider for accident benefits, regardless of who caused the collision. 

Those benefits can help cover medical and rehabilitation costs, attendant care and other eligible expenses. Starting July 1, 2026, Ontario will change some statutory accident benefits coverage. Medical, rehabilitation and attendant care benefits will remain mandatory, while several other accident benefits will become optional, giving Ontario drivers more choice but also making it more important to understand what is included in the policy.  

Establishing who’s at fault in an accident will still be processed separately.  Your insurer reviews the crash and assigns faults in the range of 0% to 100%. That decision can affect your claim, whether you pay a deductible, or your premium increases at renewal. 

How fault is determined in Ontario 

Insurance companies do not determine fault based on instinct, apologies, weather, road conditions or police tickets alone. In Ontario, insurers use the Fault Determination Rules under the Insurance Act, which includes over 40 accident scenarios and diagrams. They are used to assess fault even when the circumstances feel more complicated to the drivers involved. A driver may be found 0%, 25%, 50%, 75% or 100% at fault, and in some collisions, fault may be shared. FSRA notes that police charges and insurance fault are separate, so a driver can be ticketed but not necessarily found fully at fault for insurance purposes, or vice versa. 

This is why after an accident, drivers should take photos, share accurate information, keep the collision report safely, speak calmly, and let the insurer apply the rules. 

Does insurance premium increase after an at-fault accident? 

If an Ontario driver is found 50% or more at fault, there is a strong chance their premium could increase at the next renewal date. The increase in insurance premiums isn’t immediate, and the ongoing policy generally continues until renewal. 

That said, there is not one single percentage that applies to every driver. Duff says there are too many variables to give one realistic number. “There are so many factors that affect the rating. There is no way to say a percentage, as each driver, vehicle, loss/claim affects the rating.” 

If you're wondering how much an accident will increase your insurance rates? Here is one example:

A 29-year-old woman, living in Ottawa, driving a Hyundai Elantra, pays $2,466 a year for car insurance.

If she gets into an accident, her rate goes up to $5,165 — a 109% increase. While every situation in insurance is individual, as you can see, an at-fault accident can increase your insurance rates substantially. And, if there is a second accident on record, the premium rises to $6,950 a year.

Factors that can influence the impact include: 

Ontario drivers are already facing higher average premiums. FSRA’s data shows the average annual premium for Ontario private passenger vehicles was $2,164 as of October 2025, compared with $2,006 in October 2024.  

Who benefits from accident forgiveness coverage in Ontario? 

Accident forgiveness, commonly tied to OPCF 39, is optional coverage that can protect your premium after your first at-fault accident. It does not mean the crash didn’t occur; it only means your insurer agrees not to rate that first eligible at-fault loss against you at renewal. 

Duff adds, “The accident forgiveness, meaning the first at-fault loss on a policy, will not be rated for on the renewal premium. All eligible drivers would benefit from this endorsement. It offers relief on their renewal as the premium will not reflect the loss that occurred.” 

This can be especially valuable for drivers with clean records, families with multiple drivers on one policy, or anyone who would face a meaningful financial hit from a renewal increase. However, accident forgiveness may not transfer if you switch insurers. It also may not apply if you have multiple accidents, serious convictions or other disqualifying factors. 

A policy detail many Ontario drivers miss 

One common misconception is that an accident caused by bad weather will automatically be treated as not at fault. That is not always true. Duff says many drivers do not realize how physical damage coverage works, especially in single-vehicle accidents. “Clients are not aware that an accident due to black ice, a single vehicle, is an accident rated as at fault.” That can surprise drivers. 

It is important to keep yourself updated on Ontario’s minor at-fault accident rules because not every crash will affect your premium. Historically, the damage threshold was $2,000 but as of July 1, 2025, the threshold has increased to $5,000, aligning with updated provincial collision reporting rules for property damage-only crashes. Duff explains, “This means clients will need to meet a higher monetary threshold to pursue legal action for a loss.” Drivers should confirm the details with their insurer or broker because eligibility depends on the facts of the accident. 

Accident checklist for Ontario drivers 

After a crash, focus on safety first, then documentation. Check for injuries and call 911 if anyone is hurt. When it is safe, move vehicles out of traffic and confirm with your insurer where the vehicle should be towed before choosing a garage. Exchange driver information, licence, plate and insurance details, then take photos of the damage, road conditions, location, traffic signs and vehicle positions. Secure witness contact information and dashcam footage if available. Report the accident to your insurer as soon as possible, ideally within FSRA’s seven-day reporting window. If you disagree with your claims adjuster, ask which Fault Determination Rule was applied. 

The best thing drivers can do is understand their policy before they need to use it. As Duff notes, reviewing coverages and giving clients room to ask questions is valuable because many drivers only learn how their policy works after a claim.