Motor Vehicle Accident Compensation in Ontario: How It Works

Published: May 6, 2022 | Last Reviewed: August 13, 2026

In Ontario, thousands of people file claims for motor vehicle accident compensation each year. Obtaining compensation after a motor vehicle accident can be a complex process. There are numerous factors involved, as well as several avenues through which compensation may be pursued.

Key Takeaways: Motor Vehicle Accident Compensation in Ontario

• Ontario’s no-fault system means every injured party can claim Statutory Accident Benefits from their own insurer regardless of fault, while a separate tort claim against a negligent driver is available on top of those benefits, not instead of them.
• Medical and rehabilitation benefit coverage scales with injury severity: up to $3,500 for minor injuries, up to $65,000 combined for non-catastrophic injuries, and up to $1 million combined for catastrophic injuries such as paralysis or amputation.
• Income replacement benefits require 26 weeks of employment in the preceding 52 weeks and pay 70% of gross income, bi-weekly and capped at $400 per week, dropping to a $185 minimum weekly benefit after 104 weeks. Non-earners instead qualify for a flat $185 weekly benefit, rising to $320 after 104 weeks.
• Death and funeral benefits pay up to $6,000 for funeral costs, $25,000 to a surviving spouse, and $25,000 split among dependants if there is no spouse, separate from any tort claim for wrongful death.
• Because compensation can come from multiple sources, accident benefits, tort claims, and disability benefits, each with different eligibility rules and caps, a lawyer should assess which avenues apply before a settlement is accepted.

Ontario’s no-fault auto insurance system provides Statutory Accident Benefits to people injured in motor vehicle accidents, regardless of who caused the collision. Depending on the date and terms of the applicable policy, these benefits may include medical, rehabilitation, attendant care, income replacement, non-earner, caregiver, death, and funeral benefits. Separate motor vehicle accident compensation may also be available through a tort claim against an at-fault driver or another negligent party. A tort claim may be pursued in addition to an Accident Benefits claim, although the benefits received and other legal rules can affect the damages recoverable.

As of July 1, 2026, standard medical, rehabilitation, and attendant care benefits remain mandatory in Ontario auto insurance policies. Other Accident Benefits—including income replacement, non-earner, caregiver, death, and funeral benefits—are optional for policies entered into or renewed under the new rules. Existing policies generally retain their selected coverage and limits upon renewal unless the insured agrees in writing to make changes. Because coverage can differ from one policy to another, it is important to review the policy that applies to the accident.

If you are involved in an accident, it is important to consider all your legal options and determine which sources of compensation may apply. Below, we discuss motor vehicle accident compensation in Ontario, how it works, and how a lawyer may assist with a claim. This article provides only a general overview and is not legal advice. Each case is unique, and the benefits, limits, and legal rules that apply can depend on the accident date and the applicable insurance policy.

Motor Vehicle Accident Claims And Compensation

There are several types of claims that Ontario car accident victims may be eligible to file, depending upon the circumstances of the accident:

• Fault- or tort-based claims: If another party was at fault, you may be able to file a claim against that party for damages. The responsible party might be another driver, the owner of a vehicle, an auto manufacturer, or another negligent person or organization. Tort claims are subject to legal requirements and may be affected by statutory thresholds, deductibles, limitation periods, and Accident Benefits received.
• Accident Benefits: An injured person may make an Accident Benefits claim regardless of fault through the insurer identified under Ontario’s insurance priority rules. The benefits available depend on the applicable policy, the date of the accident, the person’s eligibility, and the nature of the injuries. As of July 1, 2026, only standard medical, rehabilitation, and attendant care benefits remain mandatory on new or renewed policies; many other benefits are optional.
• Disability benefits: If the accident has left you unable to work, you may also be eligible for short- or long-term disability benefits through an employer or private policy.
  

It’s best to speak with a legal professional when determining your best route to take. Your lawyer will be able to assess your accident, investigate fault, explain your rights and benefit eligibility, and then help you move forward with pursuing compensation.

Ontario Car Accident Settlement Amounts

The types and amount of compensation for which you might be eligible after a car accident is dependent upon the:

• type of claim you are filing;
• negligence factors; and
• the nature and extent of your damages.

If you are filing a third-party claim against a negligent party, you might be able to recover numerous types of damages, including:

• medical and rehabilitation expenses;
• future treatments;
• lost wages;
• decreased capacity to work;
• disability and disfigurement;
• the cost of hiring someone to care for your needs;
• mental anguish;
• the effect of your injuries on your relationships and well-being; and
• pain and suffering.

Accident Benefits may include medical, rehabilitation, attendant care, income replacement, non-earner, caregiver, death, funeral, and other benefits. However, not all of these benefits are mandatory under policies entered into or renewed on or after July 1, 2026. The benefits and limits available depend on the applicable policy, any optional coverage purchased, eligibility requirements, and whether the injury falls within the minor injury guideline or is classified as non-catastrophic or catastrophic.

Here’s a little more about Accident Benefits and how they work.

Medical And Rehabilitation Benefits

These benefits address reasonable and necessary medical, rehabilitation, and attendant care expenses arising from accident-related injuries when the expenses are not covered by another health plan.

Under standard coverage, minor injuries are generally subject to a limit of up to $3,500 under the Minor Injury Guideline. Non-catastrophic injuries may qualify for up to $65,000 in combined medical, rehabilitation, and attendant care benefits. Catastrophic injuries may qualify for up to $1 million in combined coverage. Optional increased limits may be available under the policy.

Whether an injury is considered minor, non-catastrophic, or catastrophic is determined under specific legal and medical criteria. A serious injury such as paralysis or amputation may support a catastrophic impairment designation, but the designation is not automatic in every case.

See also: Can I Seek Compensation for Medical Expenses from My Whiplash Injury?

Income Replacement Benefits

Coverage under Income Replacement Benefits may be available if accident-related injuries prevent an eligible person from working. Eligibility can extend to a person who was employed or self-employed at the time of the accident, or who worked for at least 26 of the 52 weeks before the accident, subject to the detailed requirements in the Statutory Accident Benefits Schedule.

The standard benefit is generally calculated at 70% of gross income, subject to a maximum of $400 per week. Optional coverage may increase the weekly limit. Payments are typically made every two weeks. Different eligibility tests apply after the first 104 weeks.

For policies entered into or renewed on or after July 1, 2026, income replacement coverage is optional. Whether it is available therefore depends on the applicable policy and the coverage selected.

Non-earner Benefits

Non-Earner Benefits may be available to certain injured people who do not qualify for income replacement benefits, including some students and recent graduates, when their injuries cause a complete inability to carry on a normal life.

Under the standard schedule, the benefit is generally $185 per week following the applicable waiting period and is not payable for more than 104 weeks after the accident. The former rule under which some claimants could receive $320 per week after 104 weeks does not apply to accidents governed by the current schedule.

For policies entered into or renewed on or after July 1, 2026, non-earner coverage is optional. Eligibility and the amount available depend on the applicable policy and the governing version of the legislation.

Caregiver Benefits

The caregiver benefit may reimburse eligible expenses incurred when an injured person can no longer provide primary caregiving to a dependant with whom they lived. Under standard coverage, the benefit is generally available only when the insured person sustained a catastrophic impairment. Optional coverage may extend it to non-catastrophic injuries.

The standard maximum is $250 per week for the first dependant and $50 per week for each additional dependant. For policies entered into or renewed on or after July 1, 2026, caregiver coverage is optional, so the policy must be reviewed to determine whether it applies.

Death And Funeral Benefits

When an insured person dies as a result of a motor vehicle accident, death and funeral benefits may be available under the applicable policy. Under the traditional standard limits, the death benefit is $25,000 to an eligible spouse and $10,000 to each eligible dependant. If the deceased was a dependant, a person on whom the deceased depended may also qualify for a $10,000 payment. The standard funeral benefit is up to $6,000. Optional coverage may increase these amounts to $50,000 for a spouse, $20,000 for each dependant, and up to $8,000 for funeral expenses.

For policies entered into or renewed on or after July 1, 2026, death and funeral benefits are optional. These insurance benefits are also separate from a possible tort claim arising from a wrongful death, although amounts received and other legal rules may affect the damages ultimately recoverable.

Speak With A Personal Injury Lawyer About Motor Vehicle Accident Compensation

If you require legal assistance regarding your accident benefits claims, we recommend you speak to one of our personal injury lawyers to evaluate your case and help come up with a plan to obtain the highest amount of compensation to which you’re entitled.

Your lawyer may also be able to:

• investigate fault;
• comb through your policies;
• ensure your rights are upheld;
• negotiate with insurance companies;
• calculate your damages;
• ensure that the full extent of your damages is accounted for;
• warn you if you receive an offer that’s too low;
• draft and file the appropriate paperwork; and
• prepare a case for court, if necessary.

If you reside in Ontario and have recently been involved in an accident, we encourage you to call our staff at Preszler Injury Lawyers. Contact our lawyers at 1-800-JUSTICE® today to set up a free consultation so that we can see how we might be able to help you. Additionally, you may book your free consultation via text, email, phone, online form submission or live chat on our website. Let us help you get started on your road to recovery with effective legal representation.

We’re here to help.