Reporting Minor Collisions

Why You Should Always Report a Minor Collision to Your Insurer

Every motorist in Ontario is required by law to have automobile insurance. In fact, the law requires that everyone have certain mandatory minimum insurance coverages. As many of you also know, you can purchase additional coverage for an added fee which provides you with increased or additional benefits in the event of an accident. What you may not know, however, is that each policy holder has certain responsibilities that, if not followed, can invalidate an insurance policy, leaving a motorist without coverage when they need it most. This article will provide you with some insight into a common situation which can result in a breach of your automobile insurance policy, and a forfeiture of your coverage.

Following a seemingly minor at-fault collision a motorist may be enticed not to report a collision by the fear of rising insurance premiums or persuaded by the victim motorist to “not go through insurance” and simply pay for any property damage out of pocket without notification to the insurer. While this may sound like an attractive option, it could also lead to some substantial problems down the road. Your insurance policy requires you to, among other things, provide written notification of any incident which results in personal injury or property damage within 7 days. The policy also prohibits you from admitting liability or responsibility for the collision. Paying for property damage following an at-fault collision could be seen as an admission of liability or responsibility for the collision, which is not only a breach of your policy, but could substantially impact on your Insurer’s ability to defend you if you are ultimately sued by a victim as a result of the impact.

Ontario law makes it possible for victims of a collision (driver or passenger) to sue an at-fault driver for personal damages resulting from an accident. These damages could result from any personal injuries which flow from the seemingly minor collision, and may not have been apparent immediately following the accident. A victim has 2 years upon which to commence a court action, and too often the victim fails to provide timely notice prior to issuing a claim. As such, you may have long since forgotten about the accident, when you are suddenly served with a Statement of Claim. While your Insurer would ordinarily assume your defence and any payout for the claim up to the policy limits of the contract, a failure by you to abide by your responsibilities under the policy may well compromise this protection.

Taking some time to review the Ontario Automobile Policy (OAP 1) can provide you with more information about how to ensure you will be protected in the event you are in an accident, or have to make a claim under your policy. The OAP1 can be viewed at http://www.fsco.gov.on.ca/ (see the auto insurance consumer resources section of the website).

Kelly Dunn
Civil Litigation