Kitchener is a city located in Southern Ontario. In the early 1900’s, Kitchener was known as the City of Berlin, but these days often Kitchener is referred to along with the nearby city of Waterloo as Kitchener-Waterloo. Kitchener and Waterloo, along with Cambridge, are often referred to as the tri-cities.
No Fault Insurance in Kitchener
Auto insurance laws in Canada differ depending on in which province you’re buying auto insurance. Kitchener, Ontario auto insurance goes by Ontario auto insurance laws. One way car insurance in Ontario differs from other provinces in the fact that their insurance is no-fault. The name no-fault refers to how insurance companies pay out after an accident has occurred. With regular at-fault insurance companies, you have to go after the other party’s company in order to get your claim paid. With a company that sells no-fault insurance, you appeal to your own company to get your claim paid. It doesn’t matter who caused the accident – your company will be the one compensating you.
No-fault insurance can be beneficial since you don’t need to wait around while the insurance companies bicker over who is at-fault and who should be paying. You get the money or benefits much faster since who is at fault is not relevant in terms of payout.
“No Fault” Still Comes With Responsibilities
Keep in mind though, that no fault does not mean you get a free pass if you cause an accident. There are penalties involved for the driver who caused the accident. What usually happens is if you are found to be at fault, this will go on your record and your premiums will probably go up.
Ontario insurance companies determine fault by using predetermined regulations. These fault determination rules cover dozens of different kinds of accidents. Auto insurance companies consult these guides and regulations to determine fault. Fault isn’t black and white, like 0% and 100%. Fault can be varied and split among multiple drivers. For example, one driver may be 75% at fault for an accident, while the two others drivers involved have 5% and 20% fault each.
Know Your Policy
If you’ve just had your first accident where you were declared at fault, don’t freak out over your premiums just yet. Some Canadian insurance companies will not increase your premiums after your first at fault accident, but not all companies are this generous. Make sure to ask your company what rules it follows before you buy a policy.