What is Accident Benefits Coverage in Auto Insurance?

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Posted on July 18, 2022 | Updated on January 14, 2024

Accidents Benefits is a coverage found in your car insurance policy and is mandatory in all provinces. Accident Benefits cover you, a passenger, or a pedestrian injured or killed in a car accident regardless of who is at fault. If you are injured in a car accident as a passenger in someone else’s car, you would make a claim with your own car insurance company. If you do not have car insurance, you would claim Accident Benefits from the policy covering the car involved in the accident.

Coverage details will vary by province but most include the following:

  • Loss of income
  • Funeral expenses
  • Medical and rehabilitation expenses
  • Benefits for your family members if you are killed

Some provinces may offer additional coverage as well as the option to increase limits or coverage.

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Ontario Accident Benefits

Income Replacement

Standard coverage – The standard level of income replacement is 70% of your gross weekly income up to a maximum of $400 per week.

Optional coverage – The standard level of income replacement can be increased to $600, $800, or $1,000 per week.

Medical, Rehabilitation, and Attendant Care

Standard coverage – The standard benefit pays up to $65,000 for medical, rehabilitation, and attendant care expenses with a 5-year time limit for non-catastrophic injuries. For catastrophic injuries, the standard benefit pays up to $1,000,000 for medical, rehabilitation, and attendant care expenses.

Optional coverage – You can choose medical, rehabilitation, and attendant care expenses limits of $130,000 or $1,000,000 for non-catastrophic injuries. For catastrophic injuries, you can add an additional $1,000,000 to the standard limit.

Caregiver, Housekeeping, and Home Maintenance Expenses

The standard caregiver, housekeeping, and home maintenance expenses benefit is available only for a person who is catastrophically impaired. You can purchase an optional benefit to provide this coverage for all impairments.

Dependant Care

Standard coverage – There is no standard dependent care benefit for persons who are employed and care for dependants.

Optional coverage – You can purchase an optional benefit to receive additional weekly dependent care expenses of $75 for the first dependant, and $25 for each additional dependant, up to $150 per week.

Death and Funeral Benefits

  • $25,000 to your spouse with an option to increase to $50,000
  • $10,000 to each dependant with an option to increase to $20,000
  • $6,000 maximum for funeral expenses with the option to increase to $8,000

Indexation Benefit

This optional coverage will ensure that certain weekly benefit payments and the deductible limits will increase on an annual basis to reflect changes in the cost of living.

Read more about increasing your liability and accident benefits coverage at the Financial Services Regulatory Authority of Ontario.

To learn more about Accident Benefits coverage in your province, contact your insurance broker.

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