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12 minute read Published on Jan 8, 2026 by BrokerLink Communications
So, you've been in a car accident, and the initial shock is gone. Now comes the confusing part: who's at fault for the collision? When it comes to determining fault in Canada, it's not always a clear-cut answer. Many collisions result in what’s called shared fault, which is a legal and insurance concept where blame is split between drivers based on each person’s actions.
Understanding how fault rules work is essential, but it can get confusing. Provinces apply different regulations when it comes to accidents. Your insurance company will look at different evidence. And even if you’re convinced the other driver was in the wrong, you could still be found partially liable. In this guide, we'll go over how fault is determined, what shared fault means, and how it varies between provinces across Canada.
An at-fault accident occurs when more than one vehicle is involved. An at-fault accident occurs when there is a car accident involving two or more cars. In this case, claims adjusters determine whether one driver was more at fault for the accident than the other. Fault determination is incredibly important when investigating motor vehicle accidents, as the at-fault driver may be on the hook for financially compensating other parties involved.
In Ontario, a driver is considered to be at fault if they are found to be more than 50% responsible for the accident, assuming the accident involved two vehicles. If the accident involved more than two vehicles, then the threshold for liability may be lower. Examples of common car accidents in which fault determination is required:
A fender bender accident caused by a driver driving over the speed limit.
A head-on collision caused by a distracted driver who was checking their phone.
A broadside accident caused by an intoxicated driver
Shared fault occurs when more than one driver is found partially responsible for a car accident. Instead of fully blaming one driver involved in the incident, insurance companies often assign fault based on a percentage, such as 50/50 or 70/30, based on the actions of each driver leading up to the actual collision.
For example, if Automobile A is speeding and Automobile B makes an improper left turn, both may be considered partially at fault for the accident. In this case, an insurance company may find driver A to be 70% at fault while automobile B is only 30% at fault. From then on, any compensation that is sought after during each driver's insurance claims process will be adjusted accordingly.
It's important to note that in Canada, shared fault between drivers doesn't necessarily mean that both drivers involved were acting irresponsibly. For example, a driver could make a minor mistake, while the other driver commits a serious traffic offence. Fault rules are simply applied to ensure claims are accurately and fairly compensated. Let's look at a few examples:
Here are common car accidents where fault is shared:
Two parked vehicles collide with each other when backing out of their parking spots (50/50 fault percentage).
A car changing lanes doesn't signal its intent and collides with another vehicle that is speeding (60/40 or 70/30).
Rear-end collisions where two cars are travelling in the same direction (fault may be shared depending on the circumstances).
Even if you feel you weren’t fully at fault for a car accident, your insurer may still assign partial liability based on accident report details and supporting evidence submitted by the drivers involved. Ultimately, understanding how fault determination rules work is crucial, as it will directly impact how your claim is handled and your insurance rates moving forward.
When it comes to determining fault in Canada, fault determination rules will vary by provincial regulations, insurance companies, and physical evidence collected at the accident scene. That said, while fault varies, most insurance companies follow similar processes that involve evaluating traffic violations, documents, and eyewitness statements. Below is a breakdown of this process:
Understanding how fault is assigned after a collision helps set expectations. While details vary by province and insurer, the process typically follows the same path. The points below outline these steps at a high level:
Insurance companies will always conduct their own investigation when a motor vehicle accident occurs. This isn't to say they don't refer to police reports, as they do, in fact, use police reports to evaluate claims. However, they also gather evidence like vehicle damage reports, statements from both drivers, photos, and witness information.
If a driver violates a traffic law, such as running a red light, failing to yield to traffic signs, or speeding, the violations typically weigh heavily in how they determine fault.
Whether or not a police report is used in a claims investigation depends on whether one was called to the accident scene. Reporting a car accident to law enforcement is mandatory in Canada, but only if the circumstances of the collision meet a certain threshold. For example, if any of the motorists involved suffered injuries, property damage between one or more automobiles is over a certain dollar amount, and more. Therefore, while police reports are not technically legally binding, they can still be influential when determining fault.
Dashcam footage, street camera recordings, and photos/videos taken by involved motorists at the scene help insurance companies verify what happened leading up to and after the automobile accident.
Witness statements are also important in determining fault, especially when there are conflicting accounts about what happened or when three or more automobiles are involved, as accident details become more complex and confusing.
Here is how fault is determined in various Canadian provinces:
Ontario is just one of several Canadian provinces that employs a no-fault insurance system. This means that no matter who is found liable for the accident, all drivers involved deal directly with their own insurance company.
Ontario follows Fault Determination Rules, which are standardized accident scenarios regulated by the Financial Services Regulatory Authority of Ontario (FSRA). So, Ontario’s no-fault insurance system does not mean that no one was at fault for the accident. Rather, accident investigators are still tasked with assigning fault in an accident.
British Columbia also operates under a no-fault insurance system. The Insurance Corporation of British Columbia is responsible for supplying all motorists with auto insurance policies and determining fault.
Alberta also follows some form of determination rules similar to other provinces. The Calgary Herald reports that while the province does not currently operate under a no-fault system, it is set to start in 2027 with the goal of reducing insurance premiums by $400 for all motorists.
Even in provinces that operate under no-fault rules, being found partially or fully at fault affects your insurance record and future premiums.
When it comes to shared fault rules across each province, the details can get confusing. Take a closer look at the breakdown we've provided for you below:
Below, we discuss Ontario’s shared-fault laws:
Ontario uses fault determination rules that encompass 40 different standardized accident scenarios that insurance companies will then reference and use to determine fault.
A 25% fault finding can still increase your premium.
If you are less than 25% at fault, your insurance provider is unable to increase your premiums.
Alberta shared-fault laws, explained below:
Alberta operates under a private insurance system that will be shifting toward a no-fault system come 2027.
Adjusters assign fault based on evidence and traffic laws.
Tort law is also used on a case-by-case basis using legal evidence and insurer assessments.
Below, we break down how shared fault works in Quebec:
All Quebec motorists are covered under a Public Automobile Insurance Plan.
Under this plan, no-fault insurance coverage is provided.
Fault for an accident is determined by the insurance company, which uses the Direct Compensation Agreement as a guiding source.
We’ll outline British Columbia’s shared-fault framework below.
No-fault public insurance through the Insurance Corporation of British Columbia.
Motorists involved are no longer able to sue for compensation.
Claims adjusters use crash examples as a reference to assess responsibility.
Below is a summary of Manitoba and Saskatchewan shared-fault guidelines:
Saskatchewan: Uses information provided by everyone involved, including actions of the driver, traffic laws, witness statements, police reports, court precedents, bylaws, and any other governing legislation
Manitoba: Under the Manitoba Public Insurance Law, those involved in a collision have the right to sue each other for compensation, regardless of who the at-fault driver is. MPI adjusters are then responsible for determining fault in an automobile accident.
Here’s an overview of Atlantic’s shared-fault rules:
Nova Scotia: Uses a no-fault system. An insurer must determine the degree of fault under section 138B of the Insurance Act.
PEI: The Automobile Insurance Fault Determination Regulation requires an insurer to establish the degree of fault. The legislation provides diagrams of collision incidents to assist in determining fault.
New Brunswick: Fault determination rules are outlined in New Brunswick Regulation 2004-141. A provision for direct compensation for property damage is included.
Newfoundland & Labrador: Fault Determination Regulations, NLR 57/19 of the Automobile Insurance Act, outline scenarios that allow insurers to assign fault.
Here is a table to further compare fault laws by province:
Province
Fault system
Impacts premiums?
Ontario
Private no-fault
Yes
Alberta
Private
Quebec
Public no-fault
Sometimes
British Columbia
Not always
Manitoba
Saskatchewan
Nova Scotia
PEI
New Brunswick
Newfoundland & Labrador
If you're still unsure how shared fault works, let's take a closer look at some hypothetical scenarios below:
Automobile A is stopped at a red light, when they are hit from behind by Automobile B, causing them to hit Automobile C. After an investigation, Automobile A is deemed 25% at fault for not leaving enough space between vehicles, while Automobile B is 75% at fault for following too closely and causing the chain reaction.
The outcome: All drivers filed claims, but Automobile B’s driver faced a significant insurance premium increase, while Automobile A saw a moderate rise. Automobile C doesn't have to pay any damages out of pocket, as it is covered by their car insurance, and their premiums also won't increase.
Automobile A runs a yellow light while Automobile B turns left, assuming traffic will stop for them. Both vehicles collide at the intersection. After viewing the police report, it was determined that Automobile A is found 70% at fault for failing to stop when the light was yellow, while Automobile B is 30% at fault for making an unsafe left turn.
The outcome: Both drivers had to pay their respective deductibles, and their premiums increased. However, because they have valid car insurance, their providers covered the damage.
On a snowy morning, Automobile A tries to merge into traffic travelling in the same direction without properly clearing ice from its windshield. Automobile B is speeding and doesn’t provide Automobile A enough space to merge. The result is a side-swipe collision between both automobile doors
The outcome: Automobile A is found 50% at fault for driving unsafely, which caused them to have poor visibility, while Automobile B is also found 50% for speeding on the highway in winter conditions.
In Canada, being deemed partly at fault in a car crash can have a major impact on your auto insurance rates. Even if you are only 25% at fault, insurers could adjust your premiums accordingly. Let's take a look:
Insurance companies determine fault using provincial legislation and accident evidence. If you are determined to be 50% or more at fault, the incident typically qualifies as "chargeable," which results in higher premiums. However, even being partially at fault can result in higher rates. For example, in Ontario, the Fault Rules instruct insurers in awarding fault percentages, and any level of liability might influence your insurance premiums.
That being said, the extent of your premium increase can depend on several factors, including your driving record and the severity of the collision. For example, a first-time at-fault drive might lead to a slight increase in your rates, while multiple accident claims could result in more substantial rate hikes of 25% to 50%.
An at-fault collision can increase your insurance premiums for up to six years. This means that every time you're up for a car insurance renewal, your insurance company will consider this accident when determining your rates. Ultimately, maintaining a clean driving record following an at-fault accident is the best way to lower your rates over time.
Some insurance providers offer an optional car insurance policy known as accident forgiveness. This policy prevents your first at-fault accident from affecting your premiums. Eligibility can vary between providers and provinces, but if you're a new driver or a safe driver with a perfect record, adding this to your mandatory coverage is recommended.
A shared-fault accident can be frustrating, especially if you believe you aren't in the wrong. Here’s what you should do immediately after any accident that may result in shared liability among drivers:
Steps to take immediately after a shared-fault collision:
Ensure your safety: Check for injuries among those involved and move your vehicles out of the way to prevent traffic congestion from oncoming traffic and multi-car pile-ups.
Call emergency services: Always contact police if there are injuries or major damage to vehicles involved.
Following a shared-fault accident, here’s what to document:
Photograph the scene: Include what direction vehicles were travelling, skid marks, traffic signs, and property damage.
Get witness information: If someone witnessed the collision, get their written statement and contact information.
Write down what happened: Include the time of day, weather conditions, and traffic flow.
Always exchange information after a crash. Here’s why it’s important:
Exchange information: Share your driver's licence information, insurance information, and contact details.
Notifying your insurance company after a crash is critical—here’s why:
Be sure to review the claim process; here’s why it matters:
Don’t forget these tips if you are involved in a shared-fault accident:
Request a copy of the police report.
Ask your insurer how the fault was determined.
Don't admit fault; it could impact your insurance claim later on.
Both motorists may be deemed partially liable based on accident evidence, traffic regulations, and what insurance provider they have. The fault percentage affects how expenses are compensated and how deductibles are paid. This may vary if the province uses DCPD insurance.
Yes. In most provinces, your insurance will still cover damages to your car under collision car coverage, but you’ll be responsible for paying your deductible. You'll also be entitled to accident benefits coverage to cover the cost of medical expenses you may incur.
Not necessarily. For example, if you have accident forgiveness on your plan and it's your first accident, you can avoid an increase in your premiums.
If you do not agree with how fault was assigned in your insurance claim, start by speaking with your insurance provider directly and submitting additional evidence. If you're still unsuccessful, you can submit a complaint with your provincial insurance regulator or speak with a personal injury lawyer.
Navigating the aftermath of an accident can be overwhelming--BrokerLink is here to make things less stressful for you. Whether you have questions about your current coverage, how fault is determined, or need to purchase insurance, our brokers have got you covered. Policies we can help you acquire include:
Third-party car liability insurance
Accident benefits coverage
Accident forgiveness
Comprehensive car coverage
Collision car coverage
Contact a licensed insurance broker today.
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