How to determine if your insurance will be effected
This is what most people that are involved in a car accident in Toronto Vaughan Richmond hill and all over Ontario ask. “Will my insurance go up?” This all depends on the details of your auto collision and your insurance. To determine this we need to look at the next points:
- Who is at Fault?
- Do your insurance provide “first time accident forgiveness” policy?
- Did the accident occur on private property or city street?
- Will your insurance be notified of this accident and claim made?
Who’s fault is it?
The rule of the thumb and the most important factor in this question is who’s fault is it. Usually the insurance of the party at fault will be paying for everything including but not limited to towing, storage, auto body repairs and rehabilitation treatments even for compensation for pain and suffering. To recover this money the insurance of the party at fault most likely will go up and with years of high insurance premium rates the auto insurance company will get their investment back. The party who is not at fault is the beneficiary. They will get their insurance benefits and covered for most expanses relating to the accident.
First time accident forgiveness
If the party that is at fault in the car accident in Toronto, Richmond hill, Vaughan or anywhere in Ontario, has an add on to their policy stating their first car accident will be forgiven, this means their insurance will not go up as a result of this accident. In case of full coverage of the party at fault with the “first time accident forgiveness” Benefits fiesta situation occurs. Both parties are covered for most expanses relating to the accident equally and no party is to suffer from increasing insurance annual fees. Bel Air Direct is one of the few Insurance companies in Toronto & Ontario known to have this add on to their polices, with some extra fees to it monthly.
Did the accident occur on private property or city street?
This plays also a big role because if you had an accident on private property, then you need to remain on scene until police arrives. Reports of auto collisions on private properties will not be done in a reporting centres but only on the same property at the same day of the accident. It is common practice for insurance companies to rule the 50/50 fault verdict. Meaning each party pays for its own damages. If you want to make a claim at that point your insurance premium will go up. If the damages are small in a private property situation its always better to consider twice making a claim with your insurance company.
Will your insurance be notified of this accident and claim made?
If you had a car accident in Toronto Vaughan, Richmond hill or any where in Ontario, it doesn’t mean your insurance will go up automatically. In order for it to go up first there needs to be a claim made by you or the other party (if you are at fault). Just by going to the reporting centre and creating an accident report doesn’t mean your insurance company would know, unless you call them at that point and let them know. Another point to consider is if you don’t let them know and don’t make even a police report, the other party might do so and when it comes time to pay for damages their insurance company will claim it from your insurance company. Your insurance company would look at their report and non of your because you didn’t do one (and by this time it would be too late anyhow). Your insurance at that point will pay what its must by law and on the next renewal will see an increase in your premium. Once you call and ask your insurance company the reason for that, you will be explained that although you didn’t bother to do a report, the other party did. So if you want to make sure your insurance don’t find out, keep a close touch with the other party and their action plans.
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