How does accident forgiveness work in Ontario?

3 minutes can save you hundreds. Enter your postal code below and join thousands of Canadians saving on insurance.

Secure. No Spam. No Fees.

Why You Can Trust MyChoice

MyChoice serves as an independent intermediary between you, financial institutions and licensed professionals without any additional charge to our users. In the interest of transparency, we disclose that we partner with some of the providers we write about – we also list many financial services without any financial gain. MyChoice does not operate a financial institution or brokerage and to ensure accuracy, our content is reviewed by licensed professionals. Our unique position means that we hold no recurring stake in your policy, ensuring our mission to help Canadians make better financial decisions is free of bias or discrimination. 

Article Contents
Picture of By <span>Aren Mirzaian</span>
By Aren Mirzaian

Updated on January 16, 2024

Visit author page
Picture of By <span>Aren Mirzaian</span>
By Aren Mirzaian

Updated January 16, 2024

Visit author page

3 minute read

Article Contents
How does accident forgiveness works in Ontario?

Accident Forgiveness in Ontario: Your Comprehensive Guide

Accidents happen. Even the most cautious drivers can find themselves in a fender bender. In Ontario, the repercussions of an at-fault accident on your insurance premiums can be significant. Enter “accident forgiveness,” a feature gaining traction and offering drivers a safety net. This article will demystify accident forgiveness, shedding light on its benefits and how it operates in the Ontario auto insurance landscape. If you’ve recently been involved in an accident, we recommend learning the ins and outs of submitting a car accident claim

What is Accident Forgiveness?

At its core, accident forgiveness is a protective feature some insurance companies offer. It ensures that your insurance premium won’t see a sudden spike if you’re involved in your first at-fault accident. Essentially, it’s an insurance company’s way of saying, “Everyone makes mistakes; we won’t hold this one against you.”

How Does Accident Forgiveness Work in Ontario?

In Ontario, accident forgiveness is an endorsement or an add-on to your existing car insurance policy. When you have this endorsement and get into your first at-fault accident, the insurance company agrees not to raise your premium due to this specific incident. However, it’s essential to understand that each insurance company might have its criteria for offering this feature. Generally, you need to be accident-free for a certain number of years, and some insurers might only provide it to long-standing customers. It’s also worth noting that while your insurer might forgive the accident, it doesn’t mean the accident is erased from your record. It will still appear on your driving history, impacting your rates if you switch providers.

What Doesn’t Accident Forgiveness Cover?

Accident forgiveness is a valuable feature, but it doesn’t provide blanket protection for all types of incidents. For instance, it typically applies only to your first at-fault accident. Subsequent at-fault accidents will likely impact your premiums. Additionally, accident forgiveness doesn’t erase the accident from your driving record; it merely prevents that specific accident from raising your rates with your current insurer. If you’re involved in severe violations, such as impaired driving, accident forgiveness might not apply. It’s also worth noting that not all insurers offer this feature, and among those who do, the terms can vary.

The Origin of Accident Forgiveness

Accident forgiveness isn’t a new concept. Insurance companies introduced it as a competitive feature to retain loyal customers and reward safe driving. Over time, its popularity has grown, making it a sought-after feature by many drivers in Ontario.

Why “Accident Forgiveness” Matters in Ontario

Ontario, with its bustling roads and diverse driving conditions, can be a challenging place to maintain a spotless driving record. Here’s why considering accident forgiveness can be beneficial:

  1. Financial Stability: No one likes unexpected costs. Accident forgiveness protects you against sudden premium hikes after an at-fault accident.
  2. Mental Peace: Driving knowing that your first mistake won’t cost you financially can offer significant peace of mind.
  3. Reward for Safe Driving: Typically, accident forgiveness is offered to drivers with a clean record, making it a reward for consistent safe driving.
How does accident forgiveness works in Ontario?

First Accident Forgiveness: The Breakdown

The term “first accident forgiveness” is quite self-explanatory. This feature ensures your premiums remain stable if you are at fault in an accident for the first time. However, it’s crucial to note that while your premiums remain unaffected, the accident will still be recorded in your driving history.

How to Qualify for Accident Forgiveness in Ontario

While the feature sounds promising, it’s not universally available to all drivers. Here’s a general criterion for eligibility:

  • Pristine Driving Record: Most insurance providers require drivers to have a clean record for a specific duration, typically 6-10 years.
  • Loyalty Counts: Some insurance companies reserve this feature for long-standing policyholders.
  • Policy Specifics: Not all policies come with accident forgiveness. It might be an added feature in premium policies or might require an additional fee.
How does accident forgiveness works in Ontario?

The Fine Print: Things to Remember

  • Not Universal: Not every insurance provider in Ontario offers accident forgiveness. Shopping around and choosing a provider that aligns with your needs is essential.
  • Claim Caps: Some insurance providers might have a cap on the claim amount for which an accident can be forgiven. 
  • One-time Use: As the name suggests, first accident forgiveness is typically a one-time benefit. Any subsequent at-fault accidents might affect your premiums.

The Impact on Your Driving Record

While accident forgiveness ensures your premiums don’t rise, the accident itself is not erased from your driving record. If you switch insurance providers, the new insurer will see the accident on your record and might consider it when determining your premium.

How Does Accident Forgiveness Impact Your Premiums?

Accident forgiveness can be a game-changer for your premiums. An at-fault accident can increase your premiums by 30% or more without this feature. With accident forgiveness, you’re protected from this hike. It’s a feature that can save you hundreds, if not thousands, of dollars over the years.

Is Accident Forgiveness Worth It?

The value of accident forgiveness largely depends on individual circumstances. If you’re a driver with a long history of safe driving and believe that the likelihood of an at-fault accident is minimal, you might think it’s not worth the extra cost. However, accidents are unpredictable, and the peace of mind and potential savings offered by this feature can be invaluable.

Bottom Line

Accident forgiveness in Ontario is more than just a buzzword. It’s a valuable feature that can offer financial stability and peace of mind. However, as with all insurance features, it’s essential to read the fine print and understand its implications fully. MyChoice is committed to guiding you through the intricate world of car insurance, ensuring you always get the best deal tailored to your needs. Want to delve deeper into the nuances of car insurance in Ontario? Check out our comprehensive guide on how car insurance works in Ontario, or get a personalized quote today!

Congratulations! You made it to the end!

Now, here is the easy part: complete your quote in under 2 minutes

Discover More About

Getting your car impounded is frustrating and even worse if you don’t know what you’re doing. Click through for a guide to releasing your impounded car in Canada.
Misconceptions about insurance make it harder for drivers to find the best deals. Click through to learn the truth about today’s most common car insurance myths.
The Alberta government has announced a comprehensive reform of the auto insurance system, set to take effect in 2024. Read on to learn more.

Even More Ways To Save