No Fault

Definition
When there is an automobile collision in all but three of the provinces – Quebec, Saskatchewan and Manitoba who have government-run automobile insurance there is a right to sue. This is a fault system. Saskatchewan, Manitoba and Quebec have no-fault systems, which means there is no right to sue.

How does this affect me?
This type of auto insurance with the right to sue another party for damages caused by negligence is limited. There can be expanded first party benefits. This insurance for a person's financial losses resulting from an automobile accident are paid that person's own insurer regardless of who was at fault.

What about Ontario?
Ontario has a mixed automobile fault system. The very generous accident benefits are currently under review and may be significantly reduced. In Ontario you can sue if your injuries are deemed serious and permanent. Ontario does have a no fault system.

Insurance answer
Where you live will determine the type of insurance system you have. Sit down with your broker or agent and discuss what type of coverage you have. Understand the limitations so that you can make the best choices to protect yourself financially from law suits.