How Accidents Impact Your Insurance Premium
Every driver — even really good ones — can have a bad day on the road. Whether you miss that stop sign or collide with another car, by definition, accidents are never intentional. But unintentional doesn’t mean “not responsible”. And in some circumstances, a collision can result in higher insurance premiums.
Who is responsible?
For insurance companies, one way to effectively manage car accident claims is to establish an at fault party— even if there was nothing you could have done to prevent it and the police haven’t charged you with an offence.
If you're in a collision with a driver of another vehicle, insurers decide who is at fault based on the Fault Determination Rules. On occasion, it may take time and further police and/or insurer investigation to determine who ultimately caused the accident. In any event, being responsible for an accident could be grounds for an increase in your auto insurance premiums.
What about 'no-fault' Insurance?
Despite the potentially misleading name, provinces that have adopted a 'no-fault' insurance system will still use Fault Determination Rules to assign partial or full responsibility to the involved parties following an accident. A no-fault insurance system simply means that you deal directly with your insurer when settling your claim.
How long does an accident stay on my record?
The amount of time that an accident can stay on your record depends on multiple factors, including but not limited to:
- The province you live in
- Your insurer's rating criteria
- The degree of fault you were assigned in the accident
- If you had TD Insurance's Accident Forgiveness coverage (or your insurer's equivalent)
Because there's no 'one size fits all' answer, contact your insurer directly for more information on how an accident may affect your record and your premium, and for how long.
How do I know if I have Accident Forgiveness?
In general, you may qualify for Accident Forgiveness if you and all other secondary or occasional drivers of your car have a clean driving record (for example, no at-fault accidents). Keep in mind that rules and eligibility may vary depending on your individual circumstances and by insurer. If you're uncertain about your eligibility, contact your insurer for more information. Or, if you have an existing car insurance policy with TD Insurance, you can review your eligibility for Accident Forgiveness and manage your policy via MyInsurance.
How to lower your premium after an accident
Even if an accident is the cause of an increase in your insurance premiums, we'll work with you to find all the possible ways you can save on your car insurance. Whether it's bundling discounts or enrolling in TD MyAdvantage, there are a number of ways you can save on your car insurance premiums with TD Insurance.
From coverage to claims, we'll help you get back on the road with confidence. If you're an existing TD Insurance customer, you can manage your policy online via MyInsurance. Or, if you're not yet insured with us but are thinking of making the switch, simply get a quote to get started.