What to do in case of a car accident in Canada: step-by-step instructions

Car accidents happen even to the most careful drivers. Over the past few years, one immigrant family in Canada experienced several accidents, received insurance payouts of $80,000 CAD, and had two cars declared total losses. This experience showed how important it is to know your rights, choose the right insurance, and understand how to act in critical situations.

In this article, we'll cover the basics of how to handle accidents in Canada and see how it works in practice.

Canada's Fine and Demerit Point System

Before talking about accidents, it's important to understand the penalty system for traffic violations. In Canada, besides monetary fines, there's a demerit point system that directly affects insurance costs and can lead to license suspension.

Point allocation rules vary by province. In Ontario, speeding by 15 km/h will only result in a monetary fine without points. In Quebec, the same violation adds 1 demerit point. Points accumulate over two years.

For drivers with G1 or G2 licenses, the critical mark is 9 points, after which licenses are suspended for 60 days. Full G license holders can accumulate up to 15 points, but the suspension is 30 days. Points are added not only for speeding but also for running red lights, failing to yield to school buses, and other violations.

The main problem with demerit points is the sharp increase in insurance costs. After violations, premiums can increase several times over, and this impact lasts for years.

What to Do Right After an Accident: Step-by-Step Guide

When an accident happens, it's important to stay calm and follow a clear process. Here's what you need to do:

First — make sure all accident participants are alive and well. If there are injuries, call an ambulance immediately.

Second — assess the damage. If the damage is serious, there are injuries, or the damage exceeds a certain amount (in Ontario it's $2,000 CAD), calling police is mandatory. Even if the damage seems minor but you're unsure, it's better to call police — this protects your interests.

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Third — document all details of the incident. Take photos of the vehicles from all sides, damage, license plates, the overall accident scene, road signs and markings. The more photos, the better. If there are witnesses, get their contact information.

Fourth — exchange information with the other driver. You'll need: name and contact details, driver's license number, insurance information (company name and policy number), make, model and license plate of the vehicle.

Fifth — contact your insurance company as soon as possible, even if you're not at fault for the accident. In most Canadian provinces, there's a no-fault insurance system, which means you always contact your own insurance, regardless of who's at fault.

Sixth — if the damage is significant, you'll need to file a police report within 24 hours. This can be done at the nearest station or through a collision reporting centre.

Real Experience: Accident in a Snowstorm

February 2022 became the first serious test for one family. During a snowstorm, the driver of a Subaru Outback failed to yield to a RAM 1500 pickup when leaving a supermarket. The impact was strong — the pickup's wheel broke.

Police, firefighters, and paramedics arrived at the scene. Emergency services cordoned off the road for the safety of other drivers. All personnel were professional and friendly, although the pickup driver was very angry.

The at-fault driver received a monetary fine and several demerit points. After processing all documents, she drove home — the Japanese car remained drivable, unlike the American pickup which had to be towed.

Important point: despite the acknowledged fault and demerit points, insurance costs didn't increase. The reason was that, on the agent's advice, a special option was chosen that doesn't count the first minor violation when calculating premiums. This option costs more when getting the policy, but ultimately saved thousands of dollars.

They had to pay a $500 CAD deductible, but in return, the family got a free rental car for the entire repair period — this was also an additional insurance option.

Summer Accident: When You're Not at Fault

In summer 2023, a second accident occurred with the same Subaru Outback. On a busy street in downtown Ottawa, a young woman crashed into their car, presumably distracted by her phone. The weather was perfect with no complicating factors.

This time police weren't called — the damage wasn't critical and there were no injuries. The family immediately contacted their insurance company. The other driver was found completely at fault, there were no fines, and insurance didn't increase.

However, they still had to pay the $500 CAD deductible — this is standard practice when filing an insurance claim. The repair went quickly, and the rental car was needed for a short time.

Interesting detail: since the repair cost exceeded $2,000 CAD, they had to file a police report after the fact. At the station, they examined the vehicle and filled out documents on the computer — the procedure took about an hour and wasn't complicated.

Wildlife Collision: What to Do and What to Expect

In 2024, on a country highway between Ottawa and Toronto, there was a collision with a deer. The animal ran onto the road unexpectedly, dodged one car, but was hit by a Kia Telluride at full speed. This was a shock for all passengers.

The actions were standard: call police, give statements, call insurance. The insurance company sent a tow truck for the damaged car.

Visually, the damage didn't seem critical, but the insurance company declared the car a total loss — when repair costs exceed the vehicle's market value. This is a common situation: modern cars are packed with expensive electronics, and even seemingly minor damage can mean replacing costly components.

Here another important insurance option came into play. The owner had leased the Telluride for three years, then bought it at full price. The insurance initially planned to assess the average market price of a used car considering depreciation.

However, it turned out the policy included an option excluding depreciation consideration. A month later, a check arrived for the full cost of a new vehicle — over $64,000 CAD minus the $500 CAD deductible. The savings were about $30,000 CAD compared to the used car's market value.

Accident Involving a Young Driver

In late summer 2025, the last, fifth accident occurred. By this time, the older children had gotten their driver's licenses and were added to the insurance as additional drivers. At a traffic light, a Honda Civic crashed into their Subaru Outback at full speed.

The impact was so strong that the Subaru was pushed into a third car. In the end, three vehicles were involved in the incident, and the next day all three parties were at the police station filing documents.

Important detail: by this time, the Subaru was 10 years old, and the insurance on it was minimal — one-way, without a rental car and without the depreciation waiver option. This is common practice for old cars: full insurance becomes economically impractical.

Since the other driver was at fault, theoretically his insurance should have covered the damage. However, the family contacted their own insurance — it's simpler and faster. The car was declared a total loss.

The standard negotiation process began. The insurance company's initial offer was $15,500 CAD including taxes. It's impossible to buy a similar car with the same features for this amount. After two weeks of correspondence, with ChatGPT's help in formulating arguments, they raised the amount to $17,000 CAD.

Financial summary after 8 years of ownership: purchased for $28,000 CAD plus taxes, drove about 100 thousand kilometers, depreciation loss of approximately $12,000 CAD. These are relatively small expenses, considering that just leasing a Kia Telluride would cost a comparable amount annually.

How to Choose the Right Insurance: Lessons from Real Experience

After five accidents over several years, you can draw clear conclusions about which insurance options really matter.

The first critically important option is accident forgiveness. It costs more when setting up your policy, but guarantees that after your first minor at-fault accident, your insurance rates won't go up. Given that premium increases after an accident can be 20-50% and last several years, the savings are substantial.

The second important option is rental car coverage. Repairs after an accident can take weeks or even months, especially if rare parts are needed. Living without a car in Canada, especially outside major cities, is extremely difficult. This option provides a free car for the entire repair period.

The third option is depreciation waiver or replacement cost coverage. This is especially important for new vehicles. In case of a total loss, you get enough money to buy a new similar car, not a used one at market price. The difference can be tens of thousands of dollars.

For old cars (10 years), full coverage is usually not worth it. Minimum liability plus third-party damage protection is the best option when the car's market value is low.

Statistics and Accident Prevention

Analyzing the five cases, you can identify patterns. Only in one case was the family at fault. Four accidents were caused by other drivers' actions or circumstances (wild animal).

Important takeaway: most accidents could have been avoided with more careful driving. A snowstorm is a reason to drive slower and be extra cautious at exits. Country highways in the evening are high-risk zones for animal collisions — you need to reduce speed and be ready for emergency braking.

Airbags didn't deploy in any case, indicating moderate-severity collisions. However, two cars were deemed total losses — modern vehicles are very expensive to repair due to complex electronics and safety sensors.

Insurance Differences Between Provinces

Insurance rules in Canada vary by province. Ontario has a no-fault insurance system — you always deal with your own insurance company regardless of fault. This simplifies the process, but doesn't mean fault isn't determined — it affects your future policy costs.

In Quebec, the system is mixed: injuries are covered by a government program, while property damage is handled by private insurers. In British Columbia, basic insurance is government-run through ICBC, but you can buy additional coverage.

Insurance costs vary greatly. In Ontario, especially in the Greater Toronto Area (GTA), it's among the highest in Canada. Young drivers and those who recently got Canadian licenses pay significantly more. Having violations can increase premiums by 25-100%.

Dealing with Police and Insurance After an Accident

Canadian police handle accidents professionally and without unnecessary drama. Their job is to document facts, ensure safety, and call medical help if needed. If you're at fault, be prepared to get a ticket on the spot or by mail.

For serious accidents, not only police but also firefighters and ambulances usually respond — this is standard procedure. They may partially close the road for safety.

Communicating with insurance requires attention. Right after an accident, call your company and report the incident. They'll give you a claim number and instructions for next steps.

Insurance will assign an adjuster who will inspect the damage. If the car is drivable, they might ask you to bring it to a specific shop. If not, they'll send a tow truck.

With a total loss, value assessment begins. Insurance will offer an amount based on market prices of similar vehicles. If you disagree — negotiate. Collect listings of similar cars for sale, prepare arguments about your car's condition and additional equipment. Insurance companies often accommodate reasonable claims.

Financial Side: Deductibles and Payouts

A deductible is the amount you pay out of pocket for any insurance claim. Typical amounts are $500 CAD, $1,000 CAD, $1,500 CAD. Higher deductibles mean lower annual premiums but higher one-time costs per accident.

For four accidents with insurance claims, the family paid the deductible four times — totaling $2,000 CAD. Meanwhile, they received almost $80,000 CAD in payouts and rental car services. Without proper insurance, the costs would have been incomparably higher.

Another important point: even if you're not at fault, you can use your own insurance, and they'll deal with the at-fault party's insurer. This is faster and easier than trying to get compensation from another company yourself.

Safe Driving Tips in Canada

Canadian winters are a special challenge. Snow, ice, limited visibility — all require reduced speed and extra caution. Winter tires are mandatory in Quebec and strongly recommended in all other provinces. Many insurers offer discounts for using them.

Rural highways are dangerous for animal collisions, especially at dawn and dusk. Deer, moose, bears — all can run onto the road. Watch for warning signs and reduce speed in risk zones.

Distracted driving is the main cause of accidents. Canadian laws strictly punish phone use while driving. In Ontario, fines can reach $1,000 CAD plus three demerit points and possible license suspension.

Aggressive driving is less common in Canada than in many other countries, but don't get complacent. Always maintain distance, use turn signals, yield when required.

What to Do if You're Unfairly Blamed

Sometimes another driver might try to shift blame to you even when they're at fault. Here, evidence is critically important: photos, dashcam video, witness statements.

A dashcam is an inexpensive investment that can save thousands of dollars and protect your reputation. Many insurance companies offer discounts for using one.

When dealing with police and insurance, stay calm and objective. Describe facts, don't get into emotional arguments with the other driver. Let the evidence speak for itself.

If insurance unfairly blames you, you have the right to dispute the decision. You can appeal to an independent arbitrator or the province's regulatory body. In complex cases, it's worth consulting with a lawyer specializing in automotive matters.

Practical Takeaways: A Checklist for Every Driver

Based on real experience, here's what every driver in Canada should know:

Choose your insurance wisely. Don't go for the cheapest option. Features like accident forgiveness, rental car coverage, and depreciation waiver might seem expensive, but they pay for themselves many times over after your first serious accident.

Always keep your vehicle registration, insurance papers, and driver's license with you. Take photos of them and store copies on your phone in case the originals get damaged in an accident.

Install a dashcam. It's your independent witness that never makes mistakes and never changes its story.

Know what to do in an accident: check everyone's health, call emergency services if needed, document everything with photos, exchange information, and call your insurance company.

Don't skimp on safety. Winter tires, regular maintenance, replacing worn brakes—all of this reduces your accident risk.

Adapt your driving style to Canadian conditions. Snow, wildlife, long distances—all of this requires attention and caution.

Remember that demerit points don't just affect your license—they impact your insurance rates for years to come. It's better to arrive five minutes late than get a speeding ticket.

Conclusion

Five accidents in a few years taught me that even the most careful drivers aren't immune to collisions. But proper preparation, knowing the procedures, and choosing the right insurance turn a potential disaster into a manageable problem.

Insurance payouts of nearly $80,000 CAD completely covered all damages and let me continue living normally without financial losses. Rental cars kept me mobile while repairs were being done. The accident forgiveness feature kept my premiums low.

The main takeaway: don't cheap out on insurance and always know what to do in an accident. This knowledge and the right coverage can save you tens of thousands of dollars and a lot of stress.

If you're planning to move to Canada or already live here and want advice on immigration matters, book a personal consultation with an immigration advisor.