Ontario’s Auto Insurance Deductible Hurts You

OTTAWA PERSONAL INJURY LAWYER – It was a great week last week for three of my injured car accident victims in Ottawa. Their injury cases all settled, relatively early in the process, and all clients were pleased with the outcome. I was happy too. I felt like each of the clients achieved a fair settlement considering Ontario’s compensation framework.

The case I want to discuss, however, highlights the issue with the deductible that applies to general damage awards under $100,000. General damages refers to the money you get to compensate you for pain and suffering.

The case is covered by confidentiality clause so I can’t spell out the detail. But I can give you enough of the gist to make the point.

My client was an older individual who was injured after being rearended by a small truck. We settled on the basis that he would receive damages for pain and suffering and past and future housekeeping and attendant care. Given his age, his future care costs would all be covered by the accident benefit carrier so were not an issue.

His three adult children each contributed very significantly to his care post accident and it was agreed that they would be awarded family law act damages for their efforts. Family Law Act damages refer to damages received by family members for the loss of care, guidance and companionship between the family member and the injured person.

When all was said and done, what deductible do you think applied to the case? First, the gentleman’s damages for pain and suffering were less that $100,000, so there was a $30,000 deductible right there. Second, the damages awarded to each child as family law act damages were reduced by the $15,000 deductible, for a total additional reduction of $45,000.

All in all, this client’s settlement was $75,000 less than it would have been if it were not for the deductibles.

If you think there is a problem with this picture, why not let your Provincial Member of Parliament know how you feel? The provincial government in Ontario is currently reconsidering the deductible. My own MPP has indicated that he does not think Ontarians care about this issue because no-one (apart from me) had ever raised it with him.

If you have been injured in Ontario and are interested in getting fair compensation from your insurance company, a top personal injury lawyer can help. For more information, contact the Ottawa accident lawyers at Auger Hollingsworth by email [email protected] or by phone at (613) 860-4529.