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 Poor weather conditions and bad driving are responsible for a slew of motor vehicle accidents in the Greater Toronto Area over the past week.  This is according to various tweets from the OPP Highway Safety Division.

 Higher Insurance Premiums

According to Bobbi Kalsi,  (LL.B., MBA), of Kalsi and Associates, an increase in accidents could drive already high Ontario insurance premiums even higher.  

The FDA approved its fourth consecutive rate increase of 1.56% in December 2019 based on claim costs, market conditions and other factors. So, while this represents the average rate across Ontario, premiums can vary greatly across individual insurers and depending on where you live. Areas that experience a high number of cars on the road will experience higher premiums since this increases the odds of an accident occurring. There is an ever-increasing number of cars on the road every year in the Greater Toronto Area so naturally, this may also be influencing insurance premiums.

Drivers in Brampton, for example, pay the costliest insurance in Ontario according to the Toronto Sun. Mississauga also ranks high but there are some areas of Mississauga where premiums are considerably lower.

Insurance rates are based on actuarial evidence which is affected by a number of factors including the number of cars and also the overall number of accidents. The same evidence is used to rate drivers based on age and sex demographics. Males under 25 are statistically more likely to have more accidents and therefore pay a higher insurance premium even if they’ve never had an accident before.

Personal collisions can also result in an increased accident premium. Even if you are not at fault in an accident, you may find your premiums increase.

 No-fault insurance

But what about Ontario’s no-fault insurance? No-fault insurance doesn’t mean that nobody is found at fault. It simply means each driver deals with their own insurance company regardless of who is at fault. An “at-fault” accident will affect your premiums for a period that is determined by the nature of the accident and where you live. You can apply for accident forgiveness, however, in order to prevent the increase in your premiums. Motor vehicle accident lawyer or personal injury lawyer can offer counsel on this and other motor accident issues to ensure you receive the maximum compensation you are entitled and are not unfairly penalized.

For more information about catastrophic injury litigation please call Kalsi & Associates at 1(844) 905-2993.

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