Car accidents can be stressful, traumatic, and, in some cases, life-altering events. If you’ve sustained injuries, even minor ones, rehabilitation is often a critical part of the recovery process, helping you regain function and return to your pre-accident level of activity as much as possible. Across Canada, all drivers are required to carry a minimum level of auto insurance to protect themselves and other drivers on the road, including providing coverage that contributes to the cost of necessary rehabilitation treatments. 

If you’ve been involved in an accident, and the at-fault driver only has minimum liability coverage, you may feel like you’ve been left out in the cold. It’s important that you remember your rights, and know that there are protections in place, and provincial minimums for auto insurance to ensure your basic needs are covered. What happens next will depend on a combination of your own private automobile insurance coverage, and the specifics of the accident. 

What Happens First?

It is the responsibility of the at-fault party’s liability insurance to respond to claim payments first. Damages like pain and suffering, income loss and future earning potential, as well as future care may be paid up to the policy limit. Once this limit has been reached, their insurer has no further obligation to pay for your claim. 

Top Ups Available 

Once the at-fault party’s liability insurance maximum has been reached, you are often able to claim the shortfallings through your own insurance policy, typically through the underinsured motorist coverage, depending on your province. 

Having this additional compensation available can top up where the at-fault party’s insurance falls short, and is often the primary way in which major claimants are fully compensated. Additionally, regardless of fault, section B benefits are available to provide aid for medical and rehabilitation during your injury recovery, as well as some income replacement benefits. 

You Can Sue the At-Fault Driver

If damages exceed all available insurance policies and coverage, you may be able to pursue the at-fault driver personally for the excess amount owed in your claim. This is, however, only practical if the driver has assets or available income to recover from. If they do not, recovery may be extremely limited even with court judgment, and collecting may be unrealistic. 

Province-Specific Minimum Coverage

In Canada’s Atlantic provinces, accident victims are awarded damages under a tort, or at-fault system, with no-fault accident benefits. Each province has slightly different minimum coverage requirements of drivers on the road, each of which may impact the potential insurance coverage available to you if you are making a claim. 

New Brunswick

Auto insurance in New Brunswick is available exclusively through insurance companies, and not through a government run entity. Drivers in the province are required to maintain a minimum level of coverage from a licensed private insurer or broker. Minimum requirements set out by the province include:

  • Third-party liability: Minimum $200,000.00;
  • Mandatory to maintain accident benefits (section B);
    • Must provide similar coverage for medical, rehabilitation and income loss;
    • Mandatory direct compensation – property damage (DCPD) coverage;
  • Mandatory to have uninsured automobile coverage.

Nova Scotia

Similarly, Nova Scotia is a no-fault system, meaning that you’re able to file your claims directly with your insurer, regardless of the specifics of the situation. Auto insurance can be purchased through private companies, which are regulated by the provincial government to ensure drivers still meet and maintain the provincial minimum insurance requirements. These minimum requirements include: 

  • Third-party liability: Minimum $500,000.00;
  • Mandatory to maintain accident benefits (section B);
    • To cover medical expenses, rehabilitation, income replacement, and death benefits.
  • Mandatory direct compensation – property damage (DCPD) coverage;
  • Mandatory to have uninsured automobile coverage.

Prince Edward Island

PEI also has drivers maintain auto insurance through private insurers. These insurers are regulated by the Island Regulatory and Appeals Commission, to ensure minimum requirements are met. For drivers on PEI, minimum insurance requirements are similar to other Maritime provinces, having minimums such as:

  • Third-party liability: Minimum $200,000.00;
  • Mandatory to maintain accident benefits (section B);
    • Accident benefits must cover injury-related expenses, regardless of fault.
  • Mandatory direct compensation – property damage (DCPD) coverage;
  • Mandatory to have uninsured automobile coverage.

Newfoundland and Labrador

The Atlantic province of Newfoundland and Labrador similarly follows a tort, or at-fault system, allowing victims or injured parties to pursue damage claims against whomever is deemed to be at-fault for the accident. The province requires motorists to hold auto insurance from private insurers, with the following minimums: 

  • Third-party liability: Minimum $200,000.00; 
  • Optional to maintain accident benefits (section B) regardless of fault;
    • Provides coverage for injury, death, and property damage if you are at fault.
  • Mandatory direct compensation – property damage (DCPD) coverage;
  • Mandatory to have uninsured automobile coverage.

What Are Section B Benefits?

If you’ve been injured in a car accident, Section B, or “accident benefits” are a mandatory section in standard auto insurance policies in all the Atlantic provinces except Newfoundland and Labrador, where they are optional. These benefits are accessible, regardless of who’s at fault in an accident, and aim to support you during the recovery processes, and are paid directly to you. It’s important to remember that all claims for Section B Benefits must be filed within a 90-day period. Typically section B outlines medical and rehabilitation benefits, housekeeping, caregiving, and death benefits if applicable, to name a few. 

Medical and Rehabilitation Costs 

Section B benefits provide financial support up to $50,000.00 during the recovery process for medical expenses and rehabilitation, including paying out benefits for a variety of treatments or aids such as:

  • Physiotherapy;
  • Chiropractic care;
  • Acupuncture;
  • Medications;
  • Assistive aids or devices;
  • Additional treatments not covered by public healthcare.

Income Replacement Benefits

Section B benefits are intended to provide financial support if you’re unable to work due to injuries sustained in a motor vehicle accident. They typically offer a partial replacement of lost income, rather than offering full compensation. In most cases, benefits are calculated at approximately 80% of your gross weekly earnings, allowing you to continue receiving a portion of your income while you recover. These payments are subject to weekly maximum limits, meaning the amount you receive may be capped regardless of your pre-accident earnings. 

Housekeeping and Home Maintenance

For up to a 52-week period, to aid in your recovery process, a benefit of $100 a week may be available for housekeeping and cleaning services, helping to ease some of the burden. 

Caregiver Benefits

If you are a parent or a caregiver, and you’ve been injured in a car accident, the world around you can’t stop turning. Support is available if you are responsible for dependents, and are unable to perform those duties. Speaking with a legal professional will help explore available options. 

Death and Funeral Benefits

If the worst case is to happen, and a fatality occurs as a result of a car accident, death benefits will be paid out to surviving family members. Additional funds are also available to help cover funeral expenses. 

What is Direct Compensation – Property Damage?

Another mandatory section in Auto Insurance policies in the Atlantic provinces includes Direct Compensation Property Damage (DCPD). This policy ensures that you are able to recover the damage costs of your vehicle through your own auto insurer, rather than having to make a claim through the at-fault party’s. 

If you are not at-fault for an accident, you will be able to submit your claim through your own insurance company, and your insurance company will pay for the cost of your vehicle repairs. If your vehicle is damaged beyond repair, the current market value of your vehicle may be claimable. 

DCPD Covers

Compensation is typically awarded based on the degree of fault, so if you are even partially at-fault this may be impacted. Claims may cover:

  • Damage to your vehicle;
  • Damage to contents of value inside your vehicle;
  • Loss of use (depending on your policy, you may be able to collect damages for a rental vehicle).

DCPD simplifies the process of collecting damages after an accident if your vehicle has been impacted. It ensures you are able to more quickly access the compensation you need, regardless of what type of auto insurance the at-fault party has, because it’s through your auto insurance. 

What is Uninsured Automobile Coverage?

Another mandatory coverage in auto insurance policies in some provinces is Uninsured Automobile Coverage. This protects you in instances where your vehicle has been damaged in an accident where the at-fault party does not have insurance or can’t be located (such as in a hit-and-run). 

Some of what it covers includes:

  • Bodily injury or death: if you or a passenger have been injured due to the actions of an uninsured driver, compensation for those injuries may be available. Compensation is also available in cases resulting in death. 
  • Property damage: benefits are available to repair your vehicle if it was damaged by an uninsured driver. 
  • Hit-and-run accidents: you are able to make a claim in instances like a hit-and-run accident, where the driver can’t be located, providing you meet reporting requirements. 

Similarly to DCPD, to file a claim through Uninsured Automobile Coverage, you will be doing so through your own insurance company. By having your insurer step in and act instead of the at-fault driver’s insurance, compensation is subject to your policy limits and conditions. Additionally, your policy will set outlined maximum coverage limits. 

What is Underinsured Motorist Coverage?

Underinsured motorist coverage is another additional policy that you can choose to have as part of your auto insurance. This helps to protect you from being held financially accountable when the at-fault driver has insurance, but not enough to fully cover your losses. 

How Does Underinsured Motorist Coverage Work?

Once the at-fault party’s insurance coverage has been fully exhausted to the policy limit, your own personal auto insurance can step in to bridge the financial gap. This is typically standard policy coverage in Canadian Atlantic provinces auto insurance. 

What Does Underinsured Motorist Coverage Cover?

To help bridge the financial burden in your recovery process, this policy will cover you (the policyholder), members of your household (family), passengers in your vehicle, and may even cover you if you are injured as a pedestrian or cyclist. Costs can be covered for:

  • Bodily injury damages;
  • Pain and suffering;
  • Loss of income and future earning capacity;
  • Medical and rehabilitation costs, including aids, medications, or other rehabilitations not otherwise covered. 
  • Damages for fatal accident claims. 

The Practical Reality

Unfortunately, many drivers carry only the minimum required insurance, and in many cases have limited personal assets available to satisfy a claim. As a result, relying solely on another driver’s coverage may leave you undercompensated after a serious accident. To better protect yourself, it is important to maintain robust insurance coverage of your own. Carrying higher liability limits and enhanced protections can help ensure you are more fully covered if you are involved in an accident where the at-fault driver only has minimum insurance. 

For this reason, It is strongly recommended that you maintain auto insurance that is above the minimum limits, to help protect yourself, your loved ones, and other passengers on the road. Carrying coverage above the provincial minimums ensures that you’re better protected in the long run, should you ever find yourself in a situation where an at-fault party’s insurance has run out.