How to Make a Car Insurance Claim in Canada 2025

Updated March 2025  |  10 min read

Immediately After an Accident

If you are involved in a collision, your priority is safety first, documentation second:

1. Check for injuries. Call 911 if anyone is injured, if the accident involves a pedestrian or cyclist, or if vehicles are blocking traffic dangerously.
2. Move to safety if possible. If vehicles are drivable and the collision is minor, most provinces require you to move them out of traffic. In Ontario, BC, and other provinces, minor collisions (under approximately $2,000 in damage) that are not blocking traffic should be moved to a collision reporting centre rather than being left blocking the road.
3. Call police if required. Police are typically required for accidents involving injury, disputes about fault, a driver who flees the scene, suspected impairment, or significant property damage. Check your province's requirements — they vary.
4. Document everything:
   • Photograph vehicle damage from multiple angles
   • Photograph license plates of all vehicles involved
   • Photograph the scene including road markings, traffic signals, and any debris
   • Note the time, weather, and road conditions
   • Get contact information for all witnesses
5. Exchange information with the other driver: Name, address, phone number, driver's licence number, licence plate, and insurance information (company name and policy number).

Reporting to Your Insurer

Report the accident to your insurer as soon as reasonably possible — most policies require "prompt" reporting and some have specific time limits. In Ontario, you must report claims within seven days for accident benefits. For property damage, do not wait weeks — report promptly and let your insurer guide you.

Your insurer's claims department is accessible 24/7 through their claims hotline. Have the following ready when you call:

• Your policy number
• The date, time, and location of the accident
• A description of what happened
• The other driver's information
• Police report number if applicable
• Contact information for any witnesses

The Claims Process

After you report the claim, your insurer assigns a claims adjuster who will manage the claim. The adjuster will:

• Take a recorded statement from you about the accident
• Review the police report and any other documentation
• Inspect the vehicle damage (in-person or through photos)
• Determine fault based on provincial fault determination rules
• Coordinate repairs or a total loss settlement

Be honest and thorough in your recorded statement. Omissions or inaccuracies discovered later can complicate your claim. Stick to what you know — it is acceptable to say you are not sure about something rather than guessing.

Fault Determination in Canada

Canada uses standardized fault determination rules in most provinces. These rules assess fault based on the type of collision: rear-end, intersection, lane change, backing, etc. They use percentages: you may be 0%, 25%, 50%, 75%, or 100% at fault. Being partially at fault affects your premium differently than being fully at fault in most provinces.

If you disagree with the fault determination, you have the right to dispute it. The process varies by province — in Ontario you can request an internal review; in BC disputes go to ICBC's formal dispute process or the Civil Resolution Tribunal.

Vehicle Repair

Your insurer will either direct you to a preferred repair shop (part of their network) or allow you to choose your own shop. Preferred shops often offer a repair guarantee from the insurer. Using a non-preferred shop is generally permitted but requires advance approval for the repair estimate.

You pay your deductible to the repair shop when you pick up your vehicle. For a DCPD (Direct Compensation – Property Damage) claim where the other driver is at fault, you may not owe a deductible in some provinces.

Total Loss

If your vehicle's repair cost exceeds a threshold (typically 70–80% of its market value), it may be declared a total loss. The insurer will offer you the actual cash value (ACV) of the vehicle — what it was worth just before the accident, accounting for age, condition, and market comparables. You can negotiate this value if you disagree with the insurer's assessment.

Rental Car During Repairs

If you have rental reimbursement (loss of use) coverage on your policy, your insurer will cover the cost of a rental car while your vehicle is being repaired — up to the daily limit and maximum specified in your policy. This coverage is optional and must be purchased in advance.

Impact on Your Premium

An at-fault claim will increase your premium at renewal. The amount of the increase depends on your province, insurer, and whether this is your first at-fault claim. Most insurers offer a "claims forgiveness" benefit — often available after several years of claim-free driving — that waives the surcharge on a first at-fault claim. Check if you have this feature before assuming your rate will automatically increase.

When to Report vs When to Pay Out of Pocket

For minor damage below or close to your deductible, it may be financially better to pay for repairs out of pocket rather than filing a claim. If the repair cost is $900 and your deductible is $500, filing a claim nets you only $400 in compensation — and may trigger a premium increase worth more than $400 per year for six years. Use a simple calculation: if the expected multi-year premium increase exceeds the net claim benefit, pay out of pocket.