No-Fault Insurance in Ontario: How Does No-Fault Insurance Work?

Reviewed by Michelle Bragg, VP Personal Lines, RIBO Licensed | Last Reviewed: June 2026

If you are wondering how no-fault insurance works in Ontario, the answer is straightforward: after a collision, you generally make a claim through your own insurance company, regardless of who caused the accident. Your insurer manages eligible claims for vehicle damage, injuries, and accident benefits according to your policy and Ontario regulations.

No-fault insurance in Ontario does not mean that nobody is responsible for an accident. Fault is still determined using provincial rules, and an at-fault accident may affect your driving record and future premiums. However, the claims process is designed to help eligible benefits and repairs begin more efficiently.

This article is for general informational purposes only and does not provide legal, insurance, regulatory, or financial advice. Ontario automobile insurance rules and coverage requirements may change. Drivers should confirm current coverage details with their insurer, broker, or applicable regulator.

WHAT IS NO-FAULT INSURANCE IN ONTARIO?

No-fault insurance in Ontario refers to an automobile insurance system where drivers involved in a collision typically seek compensation from their own insurer rather than pursuing compensation directly from another driver's insurance company.

Ontario introduced its no-fault system to simplify claims handling, reduce delays, and provide drivers with quicker access to certain benefits following a collision.

What Does "No-Fault" Mean?

In Ontario, "no-fault" means that your own insurer handles eligible claims after an accident, regardless of who caused the collision. Fault is still assigned under provincial regulations and can influence claims history, premium calculations, and eligibility for certain protections.

HOW DOES NO-FAULT INSURANCE WORK IN ONTARIO?

After an accident, each driver reports the incident to their own insurance company. The insurer reviews the circumstances, applies Ontario's Fault Determination Rules, and assesses what coverage applies under the policy.

A typical no-fault claim may include:

• Accident benefits for injuries
• Vehicle damage coverage, where applicable
• Income replacement benefits, if eligible
• Rehabilitation expenses
• Attendant care expenses, if medically necessary
• Additional living or caregiving benefits in qualifying situations

What Happens Immediately After an Accident?

If you are involved in a collision in Ontario, the general process includes:

1. Check for injuries and call emergency services if necessary.
2. Move vehicles to a safe location if possible.
3. Exchange insurance and contact information with all involved parties.
4. Document vehicle damage and the accident scene with photographs.
5. Report the collision to police or a Collision Reporting Centre when required.
6. Notify your insurance company promptly.

DOES NO-FAULT INSURANCE MEAN NOBODY IS AT FAULT?

No. Ontario auto insurance remains a fault-based system for determining responsibility.

Insurance companies use Ontario's Fault Determination Rules, established under the Ontario Insurance Act, to determine whether a driver is:

• 0% at fault
• Partially at fault
• Fully at fault

These rules describe many common collision scenarios, including rear-end accidents, lane-change collisions, intersection accidents, and parking lot incidents.

Who Determines Fault After an Ontario Car Accident?

Insurance companies determine fault by reviewing:

• Driver statements
• Police reports
• Witness statements
• Photos and video evidence
• Accident reconstruction information when available
• Ontario's Fault Determination Rules

It is possible for an insurer's determination to differ from a police officer's opinion because insurers must apply specific provincial regulations.

Can Fault Be Shared Between Drivers?

Yes. Fault can be divided between drivers.

For example, one driver may be assigned 75% responsibility while another driver receives 25% responsibility, depending on the circumstances of the collision.

WHAT COVERAGE IS INCLUDED UNDER ONTARIO AUTO INSURANCE NO-FAULT RULES?

Several mandatory and optional coverages work together within Ontario's no-fault system.

Accident Benefits Coverage

Accident benefits (also called Statutory Accident Benefits, or SABS) provide no-fault financial assistance for injuries sustained in a motor vehicle accident in Ontario, regardless of who caused the collision.

As of July 1, 2026, Ontario auto insurance is changing how these benefits are structured. Medical, rehabilitation, and attendant care benefits remain mandatory on every policy. All other accident benefits are now optional, meaning they're only included if you (or your insurer, by default on renewal) choose to add them:

• Income replacement benefits (optional)
• Caregiver benefits (optional, if eligible)
• Non-earner benefits (optional, if eligible)
• Funeral and death benefits (optional)

According to the Financial Services Regulatory Authority of Ontario (FSRA) in its documentation on what a standard auto insurance policy includes, all standard Ontario automobile policies include statutory accident benefits. It is also important to note that on July 1st, 2026, certain aspects of accident benefits change. To learn more about that, consider reading FSRAs article explaining the changes or our blog on to the topic.

Direct Compensation Property Damage (DCPD)

Historically, Direct Compensation Property Damage (DCPD) allowed eligible Ontario drivers to receive compensation from their own insurer for vehicle damage when another insured Ontario driver was responsible.

As of January 1, 2024, Ontario drivers have been able to choose to remove DCPD coverage from their policies. Drivers who opt out may need to pay out of pocket for certain vehicle damage claims.

Before removing DCPD, drivers should carefully review the potential implications with their insurance professional.

Third-Party Liability Coverage

Third-party liability coverage remains mandatory in Ontario according to the Insurance Bureau of Canada’s (IBC) Mandatory auto insurance requirements page.

This coverage helps protect drivers if they are legally responsible for injuries or property damage suffered by others.

Ontario drivers must carry at least $200,000 in third-party liability coverage, although many families choose higher limits for additional protection.

Uninsured Automobile Coverage

Uninsured automobile coverage provides protection if you are injured or your vehicle is damaged by:

• An uninsured driver
• An unidentified driver (such as in some hit-and-run situations)
• Certain underinsured drivers

WHAT ARE THE BENEFITS OF NO-FAULT CAR INSURANCE?

Ontario's no-fault system offers several advantages.

Faster Access to Benefits

Drivers generally communicate directly with their own insurer, which can reduce delays in beginning eligible claims.

Fewer Disputes Between Drivers

Because each insurer manages its own policyholder's claim, there is often less need for direct negotiation between drivers following a collision.

More Predictable Claims Handling

Drivers know which insurer to contact after an accident: their own. This can simplify the claims process during a stressful situation.

ARE THERE LIMITATIONS TO NO-FAULT INSURANCE IN ONTARIO?

Yes. No-fault insurance does not eliminate every challenge associated with a collision.

Drivers should understand that:

• Fault can still affect future premiums.
• Coverage limits apply.
• Not every expense is automatically covered.
• Certain legal actions may still occur in serious injury situations.

Ontario's automobile insurance system provides no-fault accident benefits through a driver's own insurer, while legal action may still be available in some cases involving serious injuries, subject to Ontario legislation and applicable legal thresholds.

WHAT ARE COMMON MISCONCEPTIONS ABOUT NO-FAULT INSURANCE?

Myth: No-Fault Means Accidents Never Affect Insurance Rates

This is incorrect.

If a driver is found partially or fully responsible for an accident, premiums may be affected at renewal, depending on insurer underwriting rules and available endorsements.

Myth: Accidents Never Appear on Your Driving Record

Accidents may appear on your claims history and can influence future insurance eligibility.

Myth: Drivers Can Ignore Fault Determinations

Fault assignments remain important because they may affect premiums, accident forgiveness eligibility, and claims outcomes.

HOW MANY ONTARIO DRIVERS USE AUTOMOBILE INSURANCE?

Auto insurance in Ontario is mandatory for drivers to use public roads legally. As such, automobile insurance protects millions of drivers and passengers across the country every year, with the Insurance Bureau of Canada (IBC) reporting that in 2022, billions of dollars worth of policies were written for Canadian drivers in their 2023 Facts Book report. 

The Government of Ontario reported in their Annual Road Safety report that there were approximately 11.9 million licensed drivers in Ontario in 2024, illustrating the significant role that Ontario's no-fault insurance system plays in managing claims across the province.

WHY ARE ACCIDENT BENEFITS IMPORTANT FOR ONTARIO FAMILIES?

Accident benefits can provide financial support after a collision, even when injuries prevent someone from working or carrying out daily activities.

According to the Financial Services Regulatory Authority of Ontario (FSRA) article on customization for liability and accident benefits coverage, standard accident benefits coverage includes up to $65,000 combined for medical, rehabilitation, and attendant care benefits for non-catastrophic injuries over five years, subject to policy terms and eligibility requirements.

For families, these benefits can help address expenses related to treatment, rehabilitation, and income disruption following a serious collision.

To learn more about the July 1, 2026 changes to accident benefits in Ontario, consider reading this article by FSRA or reading this blog by BIG.

SHOULD ONTARIO FAMILIES REVIEW THEIR COVERAGE REGULARLY?

Yes. Family circumstances often change over time.

Ontario drivers may wish to review coverage when:

• Adding a new driver to the household
• Purchasing a new vehicle
• Moving to a new address
• Changing commuting habits
• Experiencing major life changes

A periodic review can help ensure coverage continues to reflect current needs.

To better understand your options, you can learn more about and compare coverage options through our educational resources online.

If you would like a personalized assessment of your existing protection or simply have questions about your policy, consider requesting a quote to discuss your current policy with a licenced BIG broker today.

FREQUENTLY ASKED QUESTIONS ABOUT NO-FAULT INSURANCE ONTARIO

Is Ontario a no-fault insurance province?

Yes. Ontario operates under a no-fault automobile insurance system where drivers generally submit eligible claims to their own insurance company after an accident.

Can I sue another driver in Ontario?

Yes. Ontario drivers may pursue legal action in certain situations involving serious injuries or qualifying losses, subject to provincial thresholds and legal requirements.

Does no-fault insurance mean my premiums cannot increase?

No. Premiums may increase if you are determined to be partially or fully responsible for an accident, depending on your insurer's underwriting rules.

Do I still need third-party liability insurance in Ontario?

Yes. Third-party liability insurance is mandatory for all Ontario drivers.

Who pays for my medical expenses after a collision?

Eligible medical expenses are generally paid through your accident benefits coverage under your own automobile insurance policy.

What happens if an uninsured driver hits me?

Uninsured automobile coverage may provide protection if you are injured or your vehicle is damaged by an uninsured or unidentified driver.

FINAL THOUGHTS

Understanding Ontario auto insurance no-fault rules can help families navigate the claims process with greater confidence. Although fault is still assigned after an accident, Ontario's system allows drivers to work primarily with their own insurer for eligible claims and benefits.

Reviewing your policy regularly and understanding available coverages can help ensure you are prepared before an accident occurs.

Blog Updated: July 2026