Auto Insurance is on the radar in the election - facts you should know part 1

March 24, 2018, Kitchener, Ontario

Posted by: Robert Deutschmann, Personal Injury Lawyer

Q:

The at-fault insurer does not pay the first $38,000 in pain and suffering damages; why the large deductible?

A:

Most drivers in Ontario are not aware that there is a large deductible that applies to pain and suffering damages (also known as general damages). When you are suffering injuries due to an accident caused by someone else, you are punished again by a $38,000 deductible. The insurance company for the at-fault driver does not have to pay the first $38,000 for pain and suffering damages. So if you are at trial and a judge or jury awards you $40,000 for pain and suffering, the insurer for the at-fault party only has to pay you $2,000. To add insult to your injuries, as a result of this large deductible it is possible that you (as the injured party) will also pay trial costs to the at-fault insurer despite the jury awarding you damages. One way to provide a little protection from this large deductible is to purchase optional coverage to reduce the deductible by $10,000, but the deductible grows larger every year based on the inflation rate. Doesn’t seem fair? Ask your local MPP.

For auto insurance updates leading up to the election follow @ontariotla and #truthaboutinsurance

About Deutschmann Law

Deutschmann Law serves South-Western Ontario with offices in Kitchener-Waterloo, Cambridge, Woodstock, Brantford, Stratford and Ayr. The law practice of Robert Deutschmann focuses almost exclusively in personal injury and disability insurance matters. For more information, please visit www.deutschmannlaw.com or call us at 1-519-742-7774.

It is important that you review your accident benefit file with one of our experienced personal injury / car accident lawyers to ensure that you obtain access to all your benefits which include, but are limited to, things like physiotherapy, income replacement benefits, vocational retraining and home modifications.