If you are involved in a car accident in Ontario, you may be wondering whether you need to report it to your insurance broker or not. The answer is not always straightforward, as it depends on the severity of the accident, the damage to the vehicles, and the injuries to the drivers and passengers. However, there are some general guidelines that you should follow to avoid potential consequences.
First of all, you should always report any accident that involves injuries or fatalities to the police, as well as to your broker. This is required by law and by your insurance policy. Failing to do so could result in criminal charges, fines, or denial of your claim.
Secondly, you should report any accident that causes more than $2,000 in damage to the vehicles or property involved. This is the threshold set by the Financial Services Regulatory Authority of Ontario (FSRA), which regulates the insurance industry in the province. If you don't report such an accident, you could face a fine of up to $1,000 or lose your driver's license.
Thirdly, you should report any accident that involves another driver who is uninsured, underinsured, or unidentified (such as a hit-and-run). This is because you may be eligible for compensation from your own insurance company under the uninsured motorist coverage or the direct compensation-property damage coverage. If you don't report such an accident, you could lose your right to claim these benefits.
Finally, you should report any accident that may result in a lawsuit against you or another driver. This is because your insurance company has a duty to defend you and pay for any legal costs or settlements that may arise from the accident. If you don't report such an accident, you could be sued personally and have to pay out of your own pocket.
In conclusion, reporting a car accident to your broker in Ontario is not only a legal obligation but also a smart move to protect yourself and your finances. By reporting an accident promptly and honestly, you can avoid penalties, claim your benefits, and get the help you need from your insurance company.