Understanding the $44,000 Deductible – Free Consultation -1-800-JUSTICE®

In Ontario, many individuals are unaware of a significant deductible that applies to motor vehicle accident claims. If you are injured, a deductible of over $44,000 is deducted from your claim for pain and suffering, affecting approximately 95% of claims valued under $147,000. This means that victims, despite their serious injuries, bear this cost while insurance companies benefit from the deductible. The situation is compounded by the fact that this deductible increases annually, further impacting victims. Understanding these nuances is crucial for anyone navigating the legal landscape of personal injury claims in Ontario. For more information, contact “Preszler Injury Lawyers” at “1-800-JUSTICE” or consult with “Jeffrey Preszler”.

Do you want to know something crazy about the legal system in Ontario? For motor vehicle accident claims, unbeknownst to at least 99.9% of the population, if you are injured in a motor vehicle accident or a car accident claim, there is a deductible of over $44,000 that applies to your claim for pain and suffering in the majority of cases.

Now, that deductible disappears if your claim is valued at over $147,000. However, the issue in Ontario is that 95% of claims are valued at under $147,000. This means that the insurance company gets credit for the first $44,000 of your pain and suffering claim. Let me repeat that: the victim, who is seriously injured in an accident and has an injury that meets a certain threshold, has to pay a deductible of $44,000. This amount comes right off the top of their claim.

Where does that money go? It doesn't go anywhere; the insurance company gets credit for it. The at-fault party, or the defendant who has a contract of insurance with an insurance company, receives credit for $44,000 on the majority of motor vehicle accident claims.

To make matters worse, the deductible amount increases every year because the government has decided to index it annually. This means it goes up each year, and again, the victim is the one who pays that amount—not the drunk driver who ran you over or the careless driver. It's the victim who bears this cost, while the drunk driver may only have a property damage claim and could pay $1,000 or $500 for their damages.

This is one of the most mind-blowing and unknown facts that exists around motor vehicle accident claims.