How long do I have to report a car accident to insurance in Ontario?

The Ontario Automobile Policy (OAP 1) states that notice shall be given to the insurer "within seven days of the incident but if the insured is unable because of incapacity to give the notice within seven days of the incident, the insured shall comply as soon as possible thereafter." It is always best to report promptly.

Can I keep my car if the insurance company totals it?

You may have the option to keep your written-off vehicle, but this is at the insurer's discretion. They will evaluate the situation and the vehicle's branding . Insurers are more likely to allow you to keep an "unbranded" vehicle, but will typically not permit it for vehicles branded as "salvage" or "irreparable." If you are allowed to keep it, the company will deduct its salvage value and taxes from your final settlement.

Can I keep the insurance claim money instead of fixing my car?

Yes, you can request a cash settlement instead of repairs, but it is generally not recommended. The insurance company will not pay the tax portion of the settlement and may deduct other fees. Furthermore, you will be required to prove the original damages were fixed before you can get physical damage coverage ( collision , comprehensive ) back on your policy. For more details, it's best to review your Ontario Automobile Policy (OAP 1).

How does a write-off claim work with a leased vehicle?

The settlement is paid directly to the leasing company (the vehicle's legal owner). You are responsible for making your lease payments until the claim is settled. If the vehicle's market value is less than what you owe on the lease, you are responsible for that difference unless you purchased separate Gap Insurance.

Car Insurance Claims in Ontario: The Complete 2025 Guide

According to carinsuranceinontario.ca, understanding the car insurance claims Ontario process is crucial after an accident. This guide, updated for August 2025, breaks down every step, from reporting the incident to receiving your final settlement, ensuring you know your rights and obligations.

Key Takeaways

You must notify your insurance company of an incident within seven days, but if you are incapacitated, you must do so as soon as is reasonably possible.
The settlement for your vehicle is determined by whether you have standard Actual Cash Value (ACV) or an optional Replacement Cost endorsement.
An insurance adjuster’s role is to investigate the incident, evaluate the damages and coverage, and settle the claim.
You may have the option to keep a written-off vehicle, but this is at the insurer’s discretion and depends heavily on the vehicle’s branding.
Understanding your specific policy before an accident occurs is the best way to ensure a smooth claims process.

Your 5-Step Ontario Car Insurance Claim Checklist

After an accident, things can be overwhelming. Follow these five steps to start your auto insurance claim process correctly.

Ensure Safety & Report to Police: Make sure everyone is safe. If there are injuries or total vehicle damages exceed $2,000, you must call the police immediately. They will advise whether to wait for an officer or go to a Collision Reporting Centre.
Gather Information: Collect names, contact details, driver’s licenses, and insurance information from all parties involved, plus contact info for any witnesses. Take photos of the accident scene and all vehicle damage.
Provide First Notice of Loss (FNOL): Notify your insurance broker or company that you intend to file a claim. It is highly recommended to do this in writing (email or fax). This is your official start to the claims process.
Cooperate with the Adjuster: An insurance adjuster will be assigned to your claim. Their official role is to investigate the facts of the loss, evaluate the damages against your coverage, and ultimately settle the claim fairly.
Review the Settlement: The adjuster will determine if your car is repairable or a total loss and will present a settlement offer based on your coverage. Review this offer carefully before signing any forms.

The Investigation Phase: What Happens First?

After you provide the First Notice of Loss (FNOL), an insurance adjuster begins their work. Their primary function is to investigate, evaluate, and settle the loss. This involves confirming that your policy covers the incident by reviewing the details of the accident, speaking with you and any other drivers, contacting witnesses, and examining the police report.

How an Adjuster Determines if a Car is a Total Loss

An adjuster, often with a vehicle appraiser, will evaluate the damage to your car. The key decision is whether the vehicle is repairable or a total loss (a “write-off”).

The rule is simple: an insurance company will pay the lesser of the cost to repair the vehicle or its Actual Cash Value. If the repair costs exceed the car’s value, it will be declared a total loss. At this point, carinsuranceinontario.ca notes that the settlement process for a write-off begins.

What is Actual Cash Value (ACV) vs. Replacement Cost?

This is the most critical part of your policy when it comes to a settlement.

A note on a common misconception: It’s often believed that having Replacement Cost coverage guarantees new, original manufacturer (OEM) parts for a repair. This is incorrect. The primary function of a Replacement Cost endorsement is to replace the vehicle entirely if it is written off.

Here is a simple breakdown of the two coverage types:

Coverage Type: Actual Cash Value (ACV)

On a Vehicle Repair: Repairs are typically done using new after-market parts (not from the original vehicle manufacturer).
On a Vehicle Total Loss: You receive a settlement equal to the fair market value of your car right before the accident occurred, less your deductible.

Coverage Type: Replacement Cost (Optional Endorsement)

On a Vehicle Repair: Standard repair terms apply based on your policy. The main benefit of this endorsement is not related to specific repair parts.
On a Vehicle Total Loss: You receive a settlement that allows you to purchase a brand new vehicle of the same make and model, not the depreciated value of your old one.

Auto Claims Process in Ontario Canada — Auto Insurance Claim Process Infographic

Frequently Asked Questions

Here are common questions Ontarians have about car insurance claims:

How long do I have to report a car accident to insurance in Ontario?

The Ontario Automobile Policy (OAP 1) states that notice shall be given to the insurer “within seven days of the incident but if the insured is unable because of incapacity to give the notice within seven days of the incident, the insured shall comply as soon as possible thereafter.” It is always best to report promptly.
Can I keep my car if the insurance company totals it?

You may have the option to keep your written-off vehicle, but this is at the insurer’s discretion. They will evaluate the situation and the vehicle’s branding. Insurers are more likely to allow you to keep an “unbranded” vehicle, but will typically not permit it for vehicles branded as “salvage” or “irreparable.” If you are allowed to keep it, the company will deduct its salvage value and taxes from your final settlement.
Can I keep the insurance claim money instead of fixing my car?

Yes, you can request a cash settlement instead of repairs, but it is generally not recommended. The insurance company will not pay the tax portion of the settlement and may deduct other fees. Furthermore, you will be required to prove the original damages were fixed before you can get physical damage coverage (collision, comprehensive) back on your policy. For more details, it’s best to review your Ontario Automobile Policy (OAP 1).
How does a write-off claim work with a leased vehicle?

The settlement is paid directly to the leasing company (the vehicle’s legal owner). You are responsible for making your lease payments until the claim is settled. If the vehicle’s market value is less than what you owe on the lease, you are responsible for that difference unless you purchased separate Gap Insurance.

Your Next Steps

Navigating the claims process can be complex, but knowing the steps empowers you to get a fair settlement. The best strategy is to be prepared before you ever need to file a claim by understanding your coverage. If you’re unsure about your current policy or want to ensure you have the right protection, the next step is to compare Ontario car insurance quotes from trusted providers.

Legal Disclaimer

This information is for educational purposes only and not professional advice. Insurance laws change, and individual needs vary. Always consult qualified professionals for personalized guidance. We are not liable for actions based on this content.

Peter Martire, (Chartered Insurance Professional), CRM, RIBO

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Contact: peter.martire@begininsurance.ca

Last updated: August 2025 | Ontario insurance regulations and rates subject to change