Car Insurance: What You Should Know About Accident Benefits

Regardless of whether it's your first day on the road or you've been behind the wheel for several decades, you should always be careful while driving in Canada. Accidentally making one wrong turn or move can potentially lead to a costly, life-changing event.

We genuinely hope that you never have to use it, but in the event that it's required, we feel that Canadian drivers should know about the nuances of accident benefits.

If you're unfamiliar with this type of auto insurance, be sure to continue reading. Also, if you're looking for more information about basic car insurance, check out this article. 

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What exactly is accidental benefits insurance and what does it do?

Accidental benefits (often confused with accident forgiveness) is a type of car insurance that covers financial expenses that result from auto-related injuries or death. Simply put, if you or a passenger are hurt or killed in a collision, your costs will be financially covered. Having accidental benefits insurance makes it much easier for you and your loved ones to deal with the burden of the incident.

For example, let's imagine that you get into a head-on collision while riding in your friend's vehicle. After the accident, you realize that you've suffered a compound fracture in your left leg, which leads to an expensive medical bill and forces you to take time off of work. Thanks to accident benefits insurance, you're eligible for financial coverage.

It's also worth noting that accidental benefits insurance covers injury or death-related expenses regardless of who gets deemed at fault.

Do you need to have accidental benefits insurance in Canada?

For the most part, yes, you do. Accidental benefits insurance is required throughout the majority of Canadian provinces. The one exception to this rule is Newfoundland and Labrador, where accidental benefits insurance is considered optional.

However, even in areas where it's deemed optional, we highly suggest that you add accidental benefits to your auto insurance policy as soon as possible. You never know when a life-changing accident may occur, and it's best to be prepared. Being unprepared for an unforeseen injury or death can leave you paying for the ordeal out of pocket.

What types of expenses does accidental benefits insurance cover in Canada?

This is a challenging question to answer, as the coverage varies from province to province. Although, we can say that the majority of accidental benefits insurance policies cover the following expenses:

Medical and physical rehabilitation expenses

Although healthcare is free in Canada, there are a few procedures that require payment. 

Some examples of these procedures/expenses include:

• Ambulance rides
• Hospital parking fees
• Recovery equipment or accessories (casts, crutches, wheelchairs, etc.)
• Doctor's notes
• Surgery

Your accidental benefits insurance will cover the costs if you require one or more of the expensive procedures listed above during your healing process.

Similarly, if you require rehabilitation during the healing process, your auto insurance will cover the cost of your physical therapy sessions.

Loss of income

If your injury leaves you with a disability that forces you to take an extended period of time off of work, your auto insurance will cover the income you've lost. Receiving supplementary income makes the following weeks or months less of a financial burden for Canadian drivers.

Funeral expenses

In Canada, funerals can be expensive; funerals often range from $1,000 to $20,000.

In the event of an auto accident-related death, your accidental benefits insurance will cover the funeral expenses. This allows you to take your mind off of the bill and focus on what's most important.

Death benefits

The surviving relative of a recently deceased driver can expect to receive a lump sum payment called death benefits. The surviving relative (generally the spouse) receives a one-time payment of $2,500 in Canada.

Are drivers able to purchase additional benefits?

In some cases, yes, drivers can opt for additional coverage. In the province of Ontario, drivers have the option to add the following benefits to their accidental benefits auto insurance policy.

Caregiver benefits

In Ontario, if a family member gets forced to take time off of work to aid you throughout your recovery process, then they may be eligible for caregiver benefits. These benefits can last for as long as 15 weeks. This makes it a massive bonus for individuals that are dealing with long-term injuries.

Non-earner benefits

Non-earner benefits are regular payments made to individuals who've experienced life-altering injuries. As an example, let’s imagine that you were in a car accident and sustained injuries that resulted in full-body paralysis. Since you can no longer work or go to school, you're eligible for non-earner benefits.

Non-earner benefits are ideal for Ontarian drivers that don't qualify for income replacement benefits or eligible students (full-time students over the age of 16).

Miscellaneous benefits

Lastly, it's worth noting that Ontarian drivers are potentially eligible for a handful of various benefits that cover the following expenses:

• Education
• Housekeeping
• General maintenance and repairs

What happens if you get injured as a passenger?

This is an excellent question; however, it doesn't have a black-and-white answer.

As mentioned earlier, accidental benefits insurance covers both the driver and the passengers of a vehicle. If you're a passenger in a car, but don't have accident benefits coverage, then you would make a claim off of the driver's auto insurance policy.

On the other hand, if you're a passenger in a car and do have accidental benefits coverage, you would make a claim from your policy, not the driver's plan. Doing this allows you to take advantage of any additional coverage you may have purchased (if you are an Ontario resident).

Regardless of whose insurance you use, it's essential to know that you're covered in the event of a severe collision that results in death or injury, even if you weren't driving.

Do you still have questions, comments or concerns about accidental benefits insurance?

Do you have any unanswered questions or specific concerns about accidental benefits insurance? If so, don't hesitate to reach out to your auto insurance provider. Your auto insurance agent will be happy to answer any of the questions that you have. Taking the time to reach out to your auto insurance agent can also help you decide whether you'd like to purchase additional coverage or not (if you're an Ontario resident).