Accident Benefits Coverage in Car Insurance: All You Need to Know


We often take driving for granted because it has become such a natural part of our lives. We get in the car, turn on the engine and go about our day without giving it much thought. Although we typically make it to our destinations without incident, there are times when car accidents do happen. Most of the time these crashes are minor, causing only scratches and dents. But occasionally, more serious accidents take place that leads to injuries or even death.

Your car insurance policy’s Accident Benefits section compensates you, your passengers, or pedestrians who are injured in an accident, no matter who was at fault. Rehabilitation treatment and income replacement are a few examples of what is covered under this section. If someone dies as a result of the collision, there are also certain coverages available.

For instance, all drivers across Canada, except those in Newfoundland and Labrador, must have this coverage by law. To choose your rate you can go here to get a competitive insurance quote and get on the road as soon as possible. Read on if you want to learn everything about Accident Benefits coverage.

Who Needs This Type of Coverage?

If you live in Ontario, for example, all drivers and vehicle owners are legally required to have auto insurance that includes standard accident benefits coverage. This protection applies not only to the driver who was injured but also to their passengers and others involved in the accident. Compensation from this type of policy may help with treatment costs, rehab expenses, living expenditures, and other charges connected to the incident.

Although it may cost more, you have the option to increase your accident benefits coverage in case something bad happens. If you’re unsure of what coverages are best for you, insurance brokers have the knowledge and experience to help guide you through your options.

Types of Injuries That Allow You to Claim Accident Benefits

It is essential to understand that the type of Accident Benefit you are eligible for receiving differs depending on the gravity of your injuries. Injuries are typically classified into three different categories: minor, non-catastrophic, and catastrophic injuries.

  • Minor Injuries: For policyholders who have suffered from sprains, strains, and other injuries that are not life-threatening
  • Non-Catastrophic Injuries: The insured person has injuries that are more severe than minor ones.
  • Catastrophic Injuries: If the policyholder sustaining the injury experiences paraplegia, tetraplegia, or brain injuries. 

What Do Accident Benefits Cover?

Accident Benefits can cover a variety of costs, including lost income, medical and rehabilitation expenses, funeral costs, transport to and from treatment, equipment rental or purchase, damage to clothing caused by the accident, and lost tuition fees for injured students. Other potential coverages include housekeeping and home maintenance services, attendant care, or aide services.

It’s important to know that Accident Benefits coverage is secondary to government health plans and private or employee health plans such as medical treatment, rehabilitation, and short-term or long-term disability.

Can You Get Additional Accident Benefits Coverage?

The dependant care and indexation benefits can be added to your auto insurance policy for extra protection.

The dependant care benefit pays for the costs that an injured person incurs to care for their dependents. This benefit can be payable even if the insured person qualifies for an income replacement benefit. This benefit pays $75 per week for the first dependent and $25 per week for each additional dependent up to a maximum of $150 per week.

Note that indexation benefits will adjust Accident Benefits automatically, according to the Consumer Price Index for Canada.

Whose Insurance Will Cover You if You Were a Passenger?

In general, if you’re in an accident and get injured, you need to file an Accident Benefits claim with your own insurance company even if you were a passenger in someone else’s vehicle. If you don’t have car insurance yourself, then you can file the Accident Benefits claim under the policy that covers the car you were riding in when getting hurt.

Accident Benefits coverage is there to help make sure you’re taken care of after a crash, whether that’s through support during your recovery or for your loved ones, should something happen to you.

Bottom Line

Accidents happen unpredictably, and it’s better to prepare beforehand. By having adequate insurance coverage in place, you and your passengers will be safe in case of an accident. Depending on the severity of your injuries and the type of insurance policy you have in place, you’ll be compensated accordingly, so make sure you schedule a consult with a professional.