A Guide to Accident Forgiveness in Ontario

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

Updated on October 8, 2024

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

Updated October 8, 2024

Visit author page

3 minute read

Article Contents

Even the safest drivers can encounter an unexpected accident on the road. While road fatalities in Ontario have decreased by roughly 700 from 2003 to 2022, accidents are still in the 100,000s range. In Ontario, where car insurance is mandatory, one at-fault collision can increase your premiums.

However, an add-on called “accident forgiveness” can protect your wallet from spikes. Learn how accident forgiveness works, the conditions for eligibility, and what limitations to know.

Accident Forgiveness at a Glance

  • Accident forgiveness is a valuable tool, but it’s not a guarantee against premium increases. Maintaining a safe driving record is the most effective way to keep your car insurance costs low.
  • While accident forgiveness can be a valuable addition to your car insurance policy, its limitations may not make it worth it for individuals with clean driving records in low-risk areas.

What is Accident Forgiveness and What Does it Cover?

In Ontario, accident forgiveness on your car insurance applies explicitly to preventing an increase in your premium after your first at-fault accident. Thus, if you have accident forgiveness and cause an accident, your insurance company won’t increase your rates, allowing you to maintain your current premium. 

However, if you have subsequent at-fault accidents, expect your premium to rise, especially for severe violations like impaired driving.

How does accident forgiveness works in Ontario?

Conditions and Limitations of Accident Forgiveness in Ontario

Accident forgiveness in Ontario offers some peace of mind, but it’s not a free pass. For instance, accident forgiveness won’t cover the following:

  • Subsequent accidents where you are at fault
  • Demerit points 
  • Major violations like DUIs or reckless driving
  • Secondary drivers

Limitations of Coverage

Not only does accident forgiveness impose limited coverage—here are other conditions you should know:

Accident forgiveness is non-transferable.

If you switch providers, you must undergo re-assessment to determine your eligibility for accident forgiveness coverage.

Accident forgiveness won’t erase the incident from your record.

You may not experience a premium increase, but you will have a stain on your driving record. 

Accident forgiveness only covers minor accidents.

In Ontario, minor accidents encompass incidents costing below $2,000. 

Your insurer may not have a reset period.

Some insurers allow the forgiveness benefit to reset after an accident-free period, though it will ultimately depend on your policy.

Who is a Good Candidate for Accident Forgiveness?

You understand how accident forgiveness works, but are you a good candidate for it? Accident forgiveness may benefit you under the following circumstances:

  • You’re a conscientious driver, but acknowledge the possibility of an accidental mishap.
  • You’re an inexperienced driver who may be more prone to accidents.
  • You participate in activities that occasionally increase your risk profile, such as renting high-performance cars.
  • You drive frequently for work and are more statistically likely to experience an accident.
  • You live in a dangerous city for driving.
  • You drive an accident-prone car model.

How to Qualify for Accident Forgiveness

Accident forgiveness can be valuable for maintaining stable car insurance premiums in Ontario, but you must qualify. Here are the eligibility criteria for accident forgiveness: 

Clean driving record:

Most insurers require six to ten years with no at-fault accidents, as this period indicates you are a safe driver.

Policy specifics:

Some policies include accident forgiveness, whereas others have it as an add-on. You may have to purchase accident forgiveness with an additional fee. 

Loyalty:

Some insurance companies may reserve accident forgiveness for long-standing policyholders.

How Does Accident Forgiveness Affect Future Insurance Applications?

Accident forgiveness in Ontario has a limited impact on future insurance applications because it doesn’t directly affect how other companies view your driving record. Even with accident forgiveness, you cannot control how long an accident stays on your driving record.

Thus, accident forgiveness will help maintain your current premium but won’t guarantee the same rate with a new insurer. When determining application eligibility, future insurance companies will still consider your driving history, including forgiven accidents. 

How much your rate may increase after a car accident will depend on the following factors:

  • The severity of the accident
  • Fault determination
  • Your driving record
  • Your insurance company

Ultimately, the best way to ensure consistently affordable car insurance rates in future applications is to maintain a safe driving record.

Tips for Applying for Accident Forgiveness Insurance

There isn’t a separate application process for accident forgiveness insurance in Ontario. Accident forgiveness is typically an add-on feature offered by car insurance providers, not a standalone insurance product. However, these tips may help you get the best deal: 

Review your current policy:

Check your existing documents or contact your insurance provider to see if accident forgiveness is included.

Understand how much accident forgiveness costs:

Adding accident forgiveness comes with an additional cost. Weigh the cost against the potential benefit of premium protection after an at-fault accident.

Consider your needs:

If you’re a confident driver with a clean record, accident forgiveness might not be necessary. However, it could offer valuable peace of mind if you’re concerned about potential future mishaps.

Key Advice from MyChoice

  • Carefully weigh whether accident forgiveness suits your needs. If you’re only planning to keep the car for a short period, already have a heavily discounted insurance rate, or drive a very expensive car, the extra cost of accident forgiveness might not be worthwhile.
  • Compare quotes from different insurance companies every few years to ensure you get the best possible rate based on your current driving record and risk profile.
  • Raising your deductible (the amount you pay out of pocket before insurance kicks in) can lower your premium. Doing this can be a good option if you’re confident in avoiding accidents.

Congratulations! You made it to the end!

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