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821 "No Fault" automobile insurance "No fault" insurance means that your own insurance company will always pay your benefits under your policy regardless of whether you or the other driver were responsible for causing the accident. Ontario's "no fault" automobile insurance system only applies to accident benefits paid as compensation for bodily injury, and not as compensation for property damage.
- Benefit of "no fault" insuranceThe benefit of a "no fault" system for bodily injury is that you will receive compensation for your injury much more quickly than under a fault system, where you would have to wait for a decision about who was at fault. In fact, in Ontario, your insurance company is required by law to pay your weekly benefits within 14 days of your claim being filed. However, after paying you, your insurance company will still determine who was at fault in order to decide whether to increase your future insurance premiums. If you were at fault, your automobile insurance premiums may increase, and if you were not at fault, your premiums will not be affected. In either case, you will still receive compensation for your injuries.
- No fault insurance does not apply to claims for property damageUnlike compensation for bodily injury claims, insurance claims involving property damage are still based on fault. If you are at fault for an automobile accident involving property damage, you will only be covered if you have purchased additional coverage such as "all perils" or "collision". These types of coverage are not mandatory in Ontario. If you have purchased this extra coverage, your claim will be paid, regardless of fault, but your insurance premiums may increase.
If the other driver is at fault for the accident, and it caused property damage, you will usually be covered under either your direct compensation for property damage coverage or your uninsured automobile coverage. Both types of insurance are mandatory for drivers in Ontario. Your claim will be paid by your insurance company. Depending on your particular insurance policy, you may or may not have to pay a deductible. However, because the other driver was at fault, your insurance premiums will not increase as a result of making the claim.
If the other driver cannot be identified, you will only be covered if you have purchased optional collision or all perils coverage. For Direct Compensation for Property Damage, the Fault Determination Rules have been established under the Ontario Insurance Act to determine which driver was at fault depending on the type of accident that took place.