How does an at-fault accident affect my coverage?

If you get into a car accident and you’re found to be at fault, there are usually repercussions with your insurance. Here are some options to minimize the damage to your insurance record.

At the accident scene

First and foremost, following an accident make sure everyone is ok. If there are any injuries, call 911. Here are other tips to keep in mind:

  • At the scene of an accident, it’s common to want to admit fault, especially if the other driver is distressed. Let the professionals in law enforcement determine if charges will be laid and let your insurance company handle fault determination; a false implication could needlessly hurt your insurance premiums.
  • If the other driver is acting abusive or pestering you for an admission of fault, keep your distance and wait for authorities to arrive.
  • Never drive away from the scene of an accident without getting the insurance and contact information of the other driver. If the other driver leaves, write down their licence plate so the authorities can locate them.

Print this car accident checklist for a detailed rundown of what to do after an accident.

How do I know if I am at fault?

Insurance companies assign different levels of fault to each driver involved in an accident. Many times, both drivers are somewhat at fault. You’ll get a detailed explanation of your insurance company’s findings.

How does it affect my premium?

If you’re determined to be at fault, you’ll see a premium increase at renewal, unless you have accident forgiveness on your policy. How much it goes up depends on the situation. You’ll be informed of these changes once the renewal term is available.

Accident forgiveness

Accident forgiveness is additional coverage you can purchase to protect yourself against premium increases in the event of an at-fault accident. If you’ve been accident-free and licensed for six years, your first accident will be forgiven if you have this optional coverage. Accident forgiveness insurance cannot be purchased after an accident has occurred.

Some restrictions apply. Must meet eligibility requirements. Not available for all vehicle types. Contact your Financial Advisor for more information.