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8 minute read Published on Jan 4, 2026 by BrokerLink Communications
When you're involved in an accident, the aftermath can feel chaotic and overwhelming, especially when you believe the other driver is responsible for the collision. Fault determination affects everything from who pays for relevant vehicle repairs to how much your insurance premiums may increase. With over 25.7 million registered vehicles travelling roadways across Canada as of 2023, car accidents can happen anywhere at any time.
Imagine you're at an intersection attempting to make a blind left turn when a vehicle driving in the opposite direction speeds through the intersection and clips the front end of your car. After everything is said and done, you disagree on whose fault it is. Knowing the steps insurance companies take in assigning fault can give you a better chance at protecting your interests and finances.
Whether you’re about to file an insurance claim or curious about fault determination rules in general, this guide will take you through it all, including common car accidents, shared fault, the influence accidents can have on your insurance rates, and more. Stick around for more information.
Regardless of where in Canada your car accident occurs, most car insurance companies use similar fault determination rules to come to a fair decision in each insurance claim. As your car insurance premium can increase anywhere from 25% to 50% if you are found at fault fully or partially, understanding how this process functions is essential. Here's a closer look at how this is done:
Depending on the severity and circumstances surrounding your car accident, you may legally be required to contact local law enforcement. Typically, if a certain property damage cost threshold is met and injuries occur, you'll need to inform the police. However, reporting laws do vary between provinces. So, ensure you fully understand what is required of you based on your home province or the province you're travelling in.
With a copy of your police report, you can then go ahead and report your car accident to your insurance provider. During this time, you'll need to detail the following information:
Date, time, location, weather conditions, and events leading up to the collision.
Name, contact details, driver's licence numbers, and insurance information of all other drivers involved in the accident.
Photos and video footage of the vehicle damage and the surrounding scene.
Witness names and contact information.
Police report (if applicable).
With this initial information, your assigned insurance adjuster will begin building your case:
Interviewing: Your adjuster will begin by interviewing all drivers involved, along with passengers and pedestrians (if applicable).
Reviewing photos and video footage: They will then review photos, dash cam video footage, and traffic cameras if available.
Gathering witness statements: Building off of your police report, an adjuster will then interview witnesses and gather official witness statements about what happened.
Reconstructing the accident scene: Your adjuster will also examine the scene, including skid marks, traffic signs, points of impact, and more, to get a better understanding of what happened.
Another essential step in the fault determination process is consulting local municipal and provincial traffic laws. For example, they'll be looking at whether speed was a factor in the collision's dynamics, whether one or more drivers failed to yield, whether someone ran a red light, and more.
With the research process completed, an adjuster will gather all relevant evidence and organize it in chronological order. The adjuster will also examine first-hand evidence and laws, and compare the evidence with similar past cases.
Based on the balance of probabilities, which is a standard of proof used in civil cases, fault is assigned to one driver alone or split between the drivers involved, which is known as shared fault. For example, both parties involved could be assigning fault 50/50, 70/30, etc., based on the circumstances.
Once the fault determination process has been completed, you'll receive a written decision from your insurance provider. If you disagree with how fault is assigned, you can:
Discuss the verdict with your insurance adjuster.
Appeal the decision to your insurance company.
File a complaint with your province’s Financial Services Commission.
While determining fault is unique to each accident that has occurred, here's a closer look at some real-world examples of the most common types of car accidents in Canada and how fault determination happens:
According to Tests.ca, rear-end collisions represented 21.1% of all car accidents in Canada, making them the most common type of collision in 2021. Here's what you need to know:
Scenario: Driver A rear-ends Driver B, who has stopped at a stop sign.
Who’s at fault: Typically, Driver A would be at fault for the car accident.
Why: Traffic laws expect following vehicles to maintain a safe following distance between cars in front of them, so they have enough distance to safely stop, if the driver ahead brakes suddenly.
Left-turn collisions are also a common car accident sequence in Canada. According to the National Collision Database, in 2020, 27% of fatalities and 41% of serious car accident bodily injuries occurred at intersections across Canada. Things to keep in mind:
Scenario: In an intersection, Driver A turns left while oncoming Driver B travels straight through, where a collision occurs.
Who’s at fault: Typically, Driver A, who is making the left turn, is found at fault 100% of the time, according to ICBC.
Why: The turning driver is required to yield to oncoming traffic, unless traffic signs state otherwise.
According to CARFAX Canada, 20% of all car accidents resulting in property damage occur in parking lots. Here's what you need to consider:
Scenario: Two cars in a mall parking lot bump into one another while reversing or travelling through.
Who’s at fault: Often, the reversing vehicle will be at fault.
Why: Canadian courts and insurers view drivers in reverse as having full responsibility, due to blind signals and the expectation that they must yield to travelling vehicles.
According to the Traffic Injury Research Foundation, running red lights could account for as many as 200 fatalities and 13,000 bodily injuries annually in Canada. Here's what you need to consider:
Scenario: Driver A runs a red light or stop sign and crashes into Driver B.
Who’s at fault: Almost always, Driver A will be responsible.
Why: Running a red light or stop sign is an obvious indication that you have failed to abide by specific traffic laws.
When there are multiple parties involved in an accident, assessing fault and determining fault can be challenging. Here's what you need to know:
Scenario: A chain-reaction collision. E.g., Driver A hits Driver B, who hits Driver C.
Who’s at fault: Driver A is often more at fault for the accident. However, if Driver B hits Driver C because they didn't leave enough room, they can also be found at fault.
Why: The initial at-fault driver sets the chain reaction in motion, with liability passing to each vehicle accordingly.
According to CLG Injury Law, T-bone collisions contributed to around 25% of fatal car accidents in Canada in 2023. Here's what you need to consider:
Scenario: Driver A fails to stop at an intersection and collides with Driver B.
Who’s at fault: Driver A.
Why: Stop sign violations result in clear results when fault is determined.
When it comes to determining fault, not all accidents have a clear-cut fault determination. In many cases, insurance companies assign shared fault, which divides responsibility between drivers using percentages like 50/50, 70/30, or even 60/40. Here's a closer look at how shared fault is determined:
If both drivers contributed to the collision, fault is shared between the parties involved. For example, if Driver A runs a yellow light while Driver B speeds through the intersection, the insurance company may assign 70% fault to Driver A and 30% to Driver B. In parking lot collisions where both cars are reversing out of their parking spots, it's often for insurance companies to assign fault 50/50. These fault splits matter because they directly impact how much of the damages are covered and whether your insurance premiums will increase, and by how much.
If you are involved in the accident and partial fault is determined, you may:
Be responsible for a portion of your own repair costs.
Still have to pay your deductible.
Face a potential premium increase when you're up for a car insurance policy renewal.
For example, if you're 25% at fault when fault is determined and your claim is $4,000, your insurance company may only recover 75% of that amount from the other driver’s insurance company, meaning you'll still need to pay a portion of the repairs.
Every province applies its own fault-determination rules. Below, we compare the variations:
Here’s how each province one handles fault in car accidents:
Ontario: Uses standardized fault-finding rules (Ontario Fault Determination Rules) and a no-fault insurance model.
Alberta: Relies more on a case-by-case claims process when assessing fault. No-fault insurance is set to roll out in the province in 2027.
British Columbia & Quebec: Similar to Ontario, with predefined fault percentages for common car accident scenarios and no-fault accident systems.
Understanding fault means understanding your insurance lifecycle. Here's how fault determines your coverage premiums:
If you're found fully at fault, you can anticipate that your insurance company will increase your premiums. In terms of your deductible, if you're at fault, you'll need to pay your own deductible to your insurance company. If the other person involved in the accident is at fault, they will cover your deductible. Note that no matter who is responsible for the collision at hand, you will still receive accident benefits for medical expenses incurred to ensure you can undergo medical treatment, without the financial burden. Whether towing is covered depends on your coverage.
If you have accident forgiveness on your plan, your first at-fault accident will not increase your premiums. This is an optional endorsement meant to reward safe drivers. If you are a new driver or have never been in an at-fault accident before, adding this to your plan is recommended.
To ensure you're able to navigate your claims process after an accident correctly, take note of this post-accident checklist below:
Ensure your safety: If injuries or high amounts of property damage occur, contact the police.
Document the scene: Insurance companies rely on the evidence you provide when determining fault. Ensure you take numerous videos, photos, and street signs, and note the date, time, and location where the incident occurred. Don't forget to get the contact information of all other vehicles involved.
Notify your insurance agent: Contact your insurance company right away and report your accident.
Follow up with your insurance adjuster: Maintain open lines of communication with your insurance adjuster throughout your claims process.
Pro tip: Never admit fault at the scene of a collision, as it can influence your claim later down the line.
Insurers rely on evidence and specific traffic laws applicable to your collision to assign fault. If fault remains unclear after an investigation, they may determine that the collision is shared fault, or each insurance company may pay their own damages under the direct compensation property damage rules, depending on your province.
Timelines can vary when assessing responsibility, based on available evidence and the severity of the collision. You can expect minor accidents to take anywhere between one and two weeks, and severe accidents like leaving the scene and DUIs to take anywhere between a couple of weeks and months.
Understanding how accident fault is determined and how it affects your premiums can help you better handle the aftermath of a collision. Need help after an accident? Give BrokerLink a call today. We'll walk you through your claims process, answer any questions, and review your car insurance to ensure you're covered by the following:
Third-party liability car insurance
Accident benefits coverage
Uninsured motorist coverage
Collision coverage
Comprehensive coverage
And more!
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