The Cost of Car Accident Recovery

September 19, 2017, Kitchener, Ontario

Posted by: Robert Deutschmann, Personal Injury Lawyer

In Ontario, all car owners are required to purchase car insurance by law. The SABs, or Statutory Accident Benefits package, outline in detail the benefits available to victims of a car accident, the process for accessing the medical and rehabilitation benefits, the timelines to be followed, and the limitations of the obligations of insurers to those who are injured. The SABs is often used against injured people to deny or limit benefits.

The car insurance regime in Ontario was overhauled in 2010, and then accident benefits were reduced significantly in June 2016. Many people either aren’t aware of the changes made, or they have never been seriously ill/injured in a car accident, and are unaware of the enormity of medical and rehab costs. Many people assume that OHIP will take care of things if they are hospitalized. This isn’t true.

In the event of a car accident, OHIP will ensure that you are treated for your acute injuries, and will pay for the visits to your doctor. OHIP won’t pay for extended rehab costs, attendant care benefits, physiotherapy, occupational therapy, medications, or aids. It’s the cost of the additional services that mount tremendously quickly.

The SABs provides that people suffering from “minor injuries” as a result of the car accident, are entitled to receive up to $3,500.00 in medical and rehabilitation benefits and services.  A minor injury is defined by the Statutory Accident Benefits as a sprain, strain, whiplash associated disorder, contusion, abrasion, laceration or subluxation and any clinically associated sequelae. Where the injured person’s injuries are not considered to be catastrophic, then the injured person is entitled to receive up to $50,000.00 of medical and rehabilitation benefits for expenses incurred up to 10 years after the accident.

An individual may purchase optional coverage providing for the increase in the level of medical and rehabilitation benefits to $100,000.00 to $1,000,000.00. Note that optional coverage will not increase the medical and rehabilitation benefits for those suffering from a minor injury.

If the injured person’s injury is catastrophic as defined by the Statutory Accident Benefit Schedule, the catastrophically impaired car accident victim is entitled to receive $1,000,000.00 of medical and rehabilitation benefits for expenses occurred over the injured person’s entire lifetime

$3500 may sound like a fair amount of money, but ‘minor injuries’ like back pain, whiplash, or strains can require lengthy treatment. When you consider that an initial physio therapy visit is over $100 and subsequent visits are $65 or more the money doesn’t go far. If you require a brace or other aids like tape, or splinting, x-rays, or other specialist treatment then the money depletes very quickly.

In the event of more serious injuries like broken bones, the $50,000 can be depleted very quickly as well. Imagine you are in the position of some of my clients. You were in a head on car accident where thankfully you survive but are left wit broken wrists, legs, ribs or hip, and are then left to be in the hospital, and then off work for several months of recovery. The specialists, the drugs, the canes, the crutches, the extended rehab costs of daily or three times a week treatment are very expensive.

On top of that 15 years later you begin to develop serious arthritis, need weekly physio, medications, cane/walker and are left with the prospect of hip replacement or ankle surgery. None of this is covered after the initial 10 years even if the $50,000 in benefits hadn’t already been spent.

I strongly suggest to everyone I know to call their insurance broker or insurer and investigate the cost of the additional accident benefit coverage that is available. In most cases it is under $100 for a year. It’s a fraction of the cost of your policy and in the event of an accident you will be thankful you purchased it.

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.