This depends on the province you live in and assuming you have an active insurance policy within the province. Here are the provinces that currently have a no-fault insurance system:
- Alberta (DCPD not mandatory)
- New Brunswick
- Ontario (DCPD not mandatory)
- Prince Edward Island
If you reside in one of the provinces listed above, no-fault insurance will already be built into your standard insurance coverage. Let’s help put this in perspective. Let’s say you’re a New Brunswick resident with an active insurance policy. As you’re making your way to your destination, you accidentally miss a stop sign and lightly clip a passing car. As you take the appropriate steps after the accident, you start a claim and deal solely with your insurer throughout the fault determination and settlement process, as does the other party involved. Let’s assume in this example that we’re only dealing with vehicle damage and you are found to be 100% at-fault. If the other party also holds a car insurance policy in New Brunswick, their insurance policy’s Direct Compensation Property Damage (which is part of New Brunswick no-fault insurance) will cover their vehicle’s damage. But because you were determined 100% at fault, you’ll need to carry Collision or Upset coverage and you’ll need pay your agreed upon deductible first in order for your vehicle’s damages to be covered.