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Not Every Car Accident Case in Ontario Ensures Compensation in A Civil Action Against The At-Fault Driver: The Reality Of Deductibles

female motorist in car crash

Car accidents can be traumatic experiences, often resulting in physical injuries, emotional distress, and financial burdens. In Ontario, victims of car accidents may seek compensation through civil actions against at-fault drivers. However, the road to receiving fair compensation is not always straightforward. Despite being entitled to compensation, not every car accident case guarantees a full payout for the injured party. One significant factor that can diminish compensation is the deductible set by the Financial Services Commission of Ontario (FSCO).

In Ontario, if you are injured in a car accident, you may be eligible for compensation for your pain and suffering, also known as non-pecuniary damages. However, the Ontario Insurance Act mandates a deductible on awarded compensation, which is adjusted annually to account for inflation. This deductible, designed to mitigate insurance costs, can significantly reduce the amount received by car accident victims.

In 2023, the threshold for awards was set at $147,889.59, with a statutory deductible of $44,367.24. This means that if a court awards compensation under the threshold, the insurance company of the at-fault driver will retain a substantial portion of the entitled compensation, specifically $44,367.24. Essentially, Ontario's insurance system limits the benefits received by car accident victims, penalizing them for surviving such traumatic events. However, awards exceeding the threshold of $147,889.59 are not subject to the deductible and are awarded in full. Fatality cases are exempt from the deductible.

One of the most concerning aspects of this system is the lack of awareness among jurors regarding the deductible. Often, jurors may award compensation without considering the deductible, leaving victims with considerably less than they deserve. Furthermore, jurors cannot be informed about the deductible or suggested compensation amounts, which further exacerbates the issue of inadequate compensation.

Navigating the complexities of car accident compensation in Ontario requires expert legal guidance. At JEWELL RADIMISIS JORGE LL.P, we understand the complexities surrounding motor vehicle accidents occurring in Ontario. If you find yourself in such a situation, our dedicated team at JEWELL RADIMISIS JORGE LL.P is here to guide you through the process, advocating for your rights and helping you rebuild.

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