Vehicle Insurance Policy In Canada- All You Need To Know.

November 12, 2017 · Posted in General Articles on Car Insurance 

The technicalities of vehicle insurance in Canada are very complicated. Therefore it is advisable that you study the fine print on your vehicle insurance policy documents upfront so that you are aware of your rights should you be involved in a vehicle accident. The individual merits of every individual accident and or policy determine the availability of benefits which specific member is entitled to.

The Insurance Act of Canada and the provincial governments of Canada govern that insurance policy holders that are injured in accidents be compensated for losses, including financial losses due to vehicle accidents. Most provinces in Canada have no-fault benefits available to vehicle insurance policy holders.

Medical and rehabilitation expenses, nursing care, housekeeping expenses and income replacement benefits are available under standard Canadian vehicle insurance policies.

Canadian insurers are required to inform policyholders of their right to add “optional benefits” to their basic or standard packages. This will provide injured vehicle insurance policy holders with added benefits in case of an accident.

Should an accident occur, you need to urgently file an Application for Accident Benefits with the insurance company straight away and go to a doctor to get a medical report as evidence of the severity of your injuries. Insurance companies want this before claims can be paid out.

Motorists injured in Canada are able to sue for the loss of income and other expenses resulting from motor vehicle accidents. Motorists injured in vehicle accidents in Canada are entitled to an 80 percent portion of their net after-tax income lost up and until the trial date as well as 100 percent of gross lost future income after the trial date. Earnings post-accident will be deducted from the loss of income claim if the injured motorist be able to return to work.

Close family members and spouses of injured motorists are also entitled to sue in tort for certain losses incurred resulting from a vehicle accident, as governed by the Canadian Family Law Act. Losses incurred could include losses of guidance, care and companionship, which the injured spouse is now unable to provide.

Third party auto insurance policies cover the member if an under-insured, uninsured or unidentified motorist caused the accident.

Members don’t always realize that they are able to sue “in tort”, therefore if is advisable that they seek legal counsel as soon as they can in order for a lawyer to help them understand their rights and to help them come to an informed decision. Many respectable law firms offer this service on a pro-bono basis, so it’s prudent to get it done as soon as possible so as to not miss deadlines.

Vehicle insurance policies differ from each Canadian province to another. Certain policies are in some provinces; however they may not be in another province.

For instance, Quebec has a Provincial Fund which provides payments for medical care instead of Personal Injury Claims as well as fixed amount payments for Loss of earnings as well as pain and suffering.

Canadians can also opt for other types of vehicle insurance policies which include third party vehicle insurance policies and collision coverage.

To ensure that you get paid for your claim, remember to report the accident straight away to your vehicle insurance company. Additionally, report the accident as soon as you can to the local police department. Finally, file your claim against your vehicle insurance within 90 days of the date on which the accident took place.


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