Living in Northern Ontario means spending a lot of time on the road—whether you’re commuting through snowy conditions, heading down south for a hockey tournament, or making the long drive to camp up Highway 101. With all that driving comes the risk of an accident.
Most people may think of Auto Insurance as covering damage to their vehicle or covering their liability in the event that they’re sued after an accident. An essential part of Auto insurance policies that isn’t thought about as much is a group of coverages known as Accident Benefits (AB), which help out with other costs that may arise after an accident – including income replacement if you’re unable to work, rehabilitation costs, and more.
In this article, we’ll break down Accident Benefits coverage in more detail, including the standard coverages that come with your policy, and the upgrades to AB that can be added to protect you even further.
🛡️ What is Included in Accident Benefits?
Ontario’s Accident Benefits are included on all policies as mandatory no-fault protection. That means, regardless of who caused the accident, you’re entitled to the standard coverage as detailed below, with options to increase limits based on your needs.
🏥 Medical, Rehabilitation & Attendant Care
Covering a wide range of medical expenses that are not compensated by the Ontario Health Insurance Plan (OHIP), this AB category ensures that individuals receive financial support to assist with their health and recovery. This includes essential services such as physiotherapy, which is crucial for rehabilitation after injuries or surgeries, as well as comprehensive rehabilitation programs designed to help individuals regain their strength and mobility. Additionally, it encompasses attendant care, which provides vital support for those who may require assistance with daily living activities due to medical conditions or disabilities. Medical, Rehabilitation & Attendant Care coverage provides a standard amount to help alleviate the financial burden on patients, with optional increases available to support more involved recovery for catastrophic and non-catastrophic injuries.
| Injury Type | Examples | Standard Protection | Optional Increases |
|---|---|---|---|
| Minor Injuries | Whiplash, Bruises, Muscle Strains | Up to $3,500 | No optional increase available |
| Non-Catastrophic | Broken Bones, Moderate Brain Injuries | Up to $65,000 | $130,000 or $1,000,000 |
| Catastrophic | Paralysis, Loss of Vision, Severe Brain Trauma | Up to $1,000,000 | $2,000,000 or $3,000,000 |
👨👩👧 Caregiver, Housekeeping & Home Maintenance
If a parent experiences a catastrophic injury, their ability to care for their children and manage daily household responsibilities may be greatly impacted. In such challenging circumstances, Accident Benefits play a crucial role in providing financial assistance to help alleviate the burdens faced by the family. These benefits are designed to cover the costs associated with hiring a professional caregiver who can provide the necessary support and care for the children during this difficult time.
Beyond just caregiving expenses, this coverage also includes protection for essential housekeeping & maintenance costs, ensuring that the household can continue to function smoothly.
Coverage is automatically in place following a catastrophic injury (at the limits below), while additional protection can be purchased to extend this protection to non-catastrophic and minor injuries.
| Protection Type | Standard Protection | Optional Increases |
|---|---|---|
| Caregiver | $250/week + $50/additional child | Extend to non-catastrophic/minor |
| Housekeeping | $100/week | Extend to non-catastrophic/minor |
💼 Income Replacement
Income Replacement offers financial assistance to individuals who are unable to engage in their regular employment activities as a result of injuries sustained in an accident. This support is designed to help cover essential living expenses during the recovery period, ensuring that individuals can maintain a degree of financial stability while they focus on healing and rehabilitation. While this coverage offers up to $400 per week as a standard, we recommend increased protection depending on your regular earnings, so that you can concentrate on recovery without the added stress of financial insecurity.
| Protection Type | Standard Protection | Optional Increases |
|---|---|---|
| Income Replacement | 70% of gross income, up to $400/week | $600, $800, or $1,000/week |
🧒 Dependant Care
Provides essential financial support to help cover the costs of caring for dependants if someone is unable to do so following an accident. By addressing these costs, it ensures that dependants continue to receive the necessary care and support they need during a challenging time, while also allowing the injured individual to focus on their recovery without the added stress of financial instability. There is no standard protection in place by default, with coverage available to purchase as noted below.
| Protection Type | Standard Protection | Optional Protection |
|---|---|---|
| Dependant Care | None | $75/week + $25/additional child (max $150/week) |
⚰️ Death & Funeral Benefits
Offers essential financial assistance to the surviving family members in the unfortunate event of a fatal accident. This support is designed to help alleviate the immediate financial burdens that may arise due to the loss of a loved one, including funeral expenses, outstanding medical bills, and other necessary costs that can accumulate in the aftermath of such a tragedy.
| Protection Type | Standard Protection | Optional Increases |
|---|---|---|
| Spouse Benefit | $25,000 | $50,000 |
| Dependant Benefit | $10,000 per child | $20,000 per child |
| Funeral Expenses | $6,000 | $8,000 |
📈 Indexation Benefit
A young driver who has sustained long-term injuries as a result of a car accident may find themselves in a situation where they need to rely on various benefits for an extended period, potentially spanning many years. This reliance on benefits is often crucial for their financial stability and overall quality of life as they navigate the challenges associated with their injuries and the limitations these impose on their ability to work or engage in daily activities.
In this context, indexation plays a vital role in ensuring that the benefits they receive remain adequate and relevant over time, by adjusting the amount these benefits in line with inflation
This is an optional coverage, and if listed on a policy, it will increase benefit limits annually to account for inflation and cost of living.
⚖️ Tort Deductible Buy-Down
If you decide to pursue a lawsuit aimed explicitly at compensating for pain and suffering, it is crucial to be aware that a deductible will apply to your case. This deductible represents the amount that you will need to pay out of pocket before your insurance or other protection begins to assist with your costs. However, there is an option available to you that can significantly alleviate this financial burden. By opting for this protection, you can retain a larger portion of any settlement that is awarded to you by the court. This allows you to maximize the financial relief that you receive, ensuring that you are better equipped to address the challenges and hardships that may have arisen due to your pain and suffering.
| Protection Type | Standard Deductible | Optional Reduction |
|---|---|---|
| Pain & Suffering | $37,385 | Reduce by $10,000 |
✅ How to Choose the Right Accident Benefits Protection
Every household is different. To make sure your protection fits your lifestyle:
-
- Review Your Existing Benefits: Compare Accident Benefits with your healthcare, disability, or employer protection.
- Avoid Gaps to ensure you’re not underinsured.
- Talk to an Expert: At Northern Insurance Brokers, we help you understand your options and tailor protection to your needs.
Final Thoughts: Protect What Matters Most
Accident Benefits are a vital part of your Ontario auto insurance policy—but standard limits may not be enough. Whether it’s enhanced income replacement, extended medical protection, or caregiver support, upgrading your benefits can provide peace of mind and real protection.
Contact Northern Insurance Brokers today to explore your options and build a policy that truly supports your recovery, your family, and your future.