Auto Accident Coverage in Ontario Explained (2021 Guide)

No driver wants to get into an accident but many do.

When an accident occurs, many drivers can get back into the swing of things with physical rehabilitation. But those that suffer major injuries may have to rearrange their finances to cover medical treatments not covered by OHIP, or any leave of absence from work.

Fortunately, Ontario residents are covered by the Statutory Accident Benefits Schedule (SABS) for financial losses directly resulting from injuries sustained in auto accidents covered by their car insurance. This statute helps injured parties pay their bills while they recover.

To help you better understand the extent of this coverage, our auto accident lawyers in Mississauga explain the benefits provided. Keep reading to find out how they can assist you in the aftermath of an accident.

The Benefits and Extent of Ontario Auto Accident Coverage 

Here, we outline what is covered by motor vehicle accident benefits in Ontario.

What is the accident benefits schedule?

In the event of a car crash, the benefit schedule compensates injured drivers, as well as passengers, pedestrians, and bystanders. It is part of the Ontario auto policy offering mandatory coverage, regardless of who is at fault.

How does it help victims?

The statutory accident benefits aid victims in many ways, depending on the severity of their injuries. We’ve prepared a list of the extent of coverage.

Auto Accident Coverage for Severe Injuries

  • Income Replacement Benefit

If the injured victim has sustained major injuries that prevent them from working, they will receive the income replacement benefit. Injured drivers receive either $400 per week or 70% of their gross weekly income capped at $400, starting a week after the accident.

Drivers suffering injuries that prevent them from effectively performing essential everyday tasks may receive this benefit for up to 104 weeks. They may also receive it for as long as they’re disabled and unable to work at a job for which they’re qualified.

Income Replacement Benefit

  • Non-Earner Benefit

If the injured victim doesn’t qualify for the income replacement benefit and cannot carry on daily life as they did before the accident, they may qualify to receive $185 weekly. This amount can be increased up to $320 if the injured party continues to be unable to perform essential functions for more than 104 weeks.

This benefit is also applicable to students who are unable to lead a normal day-to-day life because of the accident.

Non-Earner Benefit

  • Rehabilitation and Medical Benefits

In case of a car accident, the injured driver’s medical expenses are covered by their insurance provider. It offers benefits to injured drivers who are insured, regardless of who is at fault. However, it’s worth noting that the compensation they receive for their rehabilitation and medical expenses depends on the severity of their injuries. The coverage is limited to $1,000,000 for severe injuries and $65,000 for non-catastrophic ones.

The medical benefits provided may include prescriptions, ambulance, dental, hearing aids, chiropractic, and/or optometric services. They may also cover the cost of transportation for the victim to different medical facilities for treatment. Furthermore, rehabilitation benefits may include the cost of certain services and treatments such as:

  • Life skills training
  • Financial counselling
  • Home modifications for disability requirements
  • Vocational training
  • Transportation costs to travel to and from counselling
  • Workplace modifications.

Rehabilitation and Medical Benefit

  • Caregiver Benefits

Drivers who sustain severe injuries that prevent them from undertaking the primary caregiving activities for their family that they performed before the accident will be eligible to receive this benefit. It reimburses the cost of hiring somebody to be a caregiver and is generally beneficial for families with stay-at-home parents, single-parent families, and those with dependents.

It includes $250 weekly for the primary dependent and an additional $50 per week for subsequent dependents.

Caregiver Benefit

  • Death and Funeral Benefit

If the driver passes away as a result of an auto accident, this benefit provides a payout to primary dependents in their families such as their spouse or subsequent dependents. It covers expenses associated with the funeral of the deceased within 180 days of the accident. Individual dependents may be eligible to receive $10,000; the spouse receives $25,000.

If the driver is permanently disabled as a result of the auto accident, the benefit will compensate the family for up to 150 weeks. The benefit for an individual who has been fatally injured is up to $6,000.

Death and Funeral Benefit

Auto Accident Coverage for Minor Injuries

If the driver suffers injuries that are deemed minor, they are eligible for medical and rehabilitation benefits that are different from those suffering severe injuries. These injuries include strains, sprains, whiplash, partial dislocation, bruises and lacerations, and drivers may be eligible to receive a total of $3,500 in combined rehabilitation and medical treatments.

NOTE: Effective June 1, 2016, the benefits included in the standard auto insurance policies changed in Ontario to make insurance premiums more affordable. This helps improve the overall system and offers more choices to consumers.

Claiming accidental benefits in Ontario can be a challenging process for someone who isn’t well-informed. Hopefully, this brief overview provided by our auto accident lawyers will help you get the benefits you are owed. However, each individual should be aware of what their limits are to make sure they choose the right coverage.

For more help, book a free consultation with our auto accident lawyers in Mississauga. Their experience helping victims of motor vehicle accidents means they will fight to get you suitable compensation and deliver legal assistance tailored to your case.