What damages can I collect for repairs?

Ontario residents who have been involved in a car wreck may be quite challenged as they attempt to get back to normalcy. One of those challenges includes how to deal with their vehicle’s insurance company regarding a damage claim. The payout that they can expect will be largely determined by their role in the accident and other factors.

The mandatory coverage plan carries Direct Compensation-Property Damage that pays for a temporary rental car, damaged contents and vehicle damages, minus the deductible. If the insured was responsible for the crash, however, the company’s final payout will reflect the per cent that the driver was not liable. For instance, a driver who was 80 per cent responsible for the accident will receive a payment reflecting 20 per cent of all losses, minus the deductible. Under this policy, certain restrictions apply if an uninsured or out-of-province vehicle was involved in the accident.

Under the mandatory plus optional coverage, a person has the option to choose Collision or Upset Coverage that will pay for the entire costs of a vehicle replacement or repairs, minus the deductible, no matter who was at fault in the crash. Other coverage options under this plan are available.

Following a claim for vehicle damages, the insurance company will make a payment based on whichever is lower between the vehicle’s actual cash value or the total cost of repairs. If the company does pay for repairs, the car must be repaired to the exact condition that it was in before the crash. Otherwise, the owner may face extra charges.

Sometimes, insurance companies deny a claim or offer the insured an unacceptably low settlement. In situations where a victim of a car accident does not agree with an insurance company’s decision, a lawyer who is knowledgeable in Ontario’s insurance laws might try to help the victim by disputing the insurance company’s decision.

Source: Commission of Ontario, “How Does Your Insurance Company Decide Whether to Repair Your Vehicle or Declare It a Total Loss“, October 02, 2014