Understanding the Deductible in Ontario - Diamond and Diamond Lawyers

Understanding the Deductible in Ontario


A deductible is a specified amount of money that an insured person must overcome before an insurance company must compensate him or her for a claim.

In Ontario, all pain and suffering (tort) claims arising out of a motor vehicle accident are subject to a deductible which is determined by statute.

The deductible was established to help reduced the amount of clams advanced which would in theory, lower car insurance rates for consumers. In reality, the deductible only serves to reduce the exposure of the insurance companies and limit the recovery of accident victims.

The deductible amount currently sits at $36,905.40. This means for example, that if your pain and suffering award is valued at $50,000.00, the award is reduced by $36,905.40, netting you only $13,094.60. The deductible amount increases slightly on January 1st of ever year to account for inflation.

If the assessment of your pain and suffering exceeds $123,016.99, the deductible does not apply and you will be entitled to recover the full amount.

Special damages, including income loss and out of pocket expenses, are not subject to the deductible.

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