How many car insurance claims are there per year in Canada? You'll never believe it!

Imagine you're driving on the highway during rush hour after a long day at work when--BAM, the vehicle behind rear-ends you. After the initial shock wears off and you've exchanged information with the other driver, you're probably wondering whether your vehicle damage is worth filing an insurance claim for.

In Canada, thousands of motorists contemplate the same question and go through similar experiences daily. Whether it's a minor fender bender, a cracked windshield, or an auto theft, car insurance claims are a reality for most drivers throughout their lifetime.

But just how many car insurance claims are filed each year? And what does it mean for your finances, driving record, and your ability to get affordable coverage in the future?

Average number of insurance claims in Canada annually

Car insurance claims play a major role in Canada's insurance industry as a whole, accounting for approximately 40% of payouts across insurance products. According to the Canada Insurance Bureau, Canada experiences a national average of approximately 1.7 million car insurance claims annually.

Back in 2019, around $18 billion was paid out in insurance claims. When you compare these numbers to 1990, the jump is huge. In 1990, it was reported that the amount of money paid by car insurance policies in the form of claims was just $6 billion.

In the past few years, the frequency and value of claims have been impacted by a variety of factors, including increased vehicle traffic with over 25.7 million registered cars on Canadian roadways, crime rates, the increasing frequency of severe weather, and more. These factors contribute to the changing circumstances surrounding auto insurance claims across the country.

Auto insurance claims: variations by province

The frequency and nature of car insurance claims across each province can vary significantly based on things like population density, weather conditions, and insurance systems. For example, extreme weather claims made up 2.3% of total claims averaged from 2014 to 2023 in Canada. So, how do these stats measure up across the country? Let's take a closer look at how claims vary between some provinces:

Ontario

In 2022, Ontario had the largest overall number of vehicle registrations in Canada, at 9.4 million. And, as Canada's most populous province, it makes sense that it accounts for a high volume of car insurance claims compared to other regions. Specifically, according to IBC, the province experienced a 524% increase in auto theft cases between 2018 and 2023.

Alberta

Similar to Ontario, Alberta experienced some of the highest auto insurance claims in the country, increasing by 55% between 2019 and 2023, as the IBC states. This, along with Alberta's extreme weather conditions and natural disasters like wildfires, is partly why Albertans experienced some of the highest insurance premiums in the country as of December 2024.

For example, in August of 2024, a severe hailstorm with strong winds, heavy rain and localized flooding throughout Calgary cost the province approximately $2.8 billion in insured losses for both home and auto coverage claims.

British Columbia

The Insurance Corporation of British Columbia reports a total of 303,593 car accidents in 2024. Although specific claims data is not available, it's safe to assume a majority of the drivers involved in these collisions filed a car insurance claim with their insurance company. ICBC also reports that the number of auto crime events in British Columbia (vehicles stolen and vandalism) declined in 2024 compared to 2023.

Quebec

According to statistics from Groupement Des Assureurs Automobiles, the number of claims in Quebec was 558,252, with a claims frequency of 10.19% in 2023. Between 2020 and 2023, the province of Quebec experienced a 23% increase.

Cost of claims

Claims costs across the country are increasing. According to Canadian Underwriter, the Net Insurance Service Ratio (NISR), which measures industry profitability, exceeded 80% all throughout 2024. Why does this matter? Industry experts state that anything about 80% can suggest unprofitability. In other words, car insurance companies were paying out close to as much as they were earning, leaving very little room for profits.

Electric vehicle claim costs

The increased use of electric vehicles has also impacted car insurance claims in Canada. According to Claims Journal, the claims frequency for repairable, collision-damaged battery electric cars in Canada rose to 3.84% in 2024, an increase of 34% over the previous year.

Types of claims: frequency & impact

Not all insurance claims are equal. For example, some accidents happen more often than others, and some motor insurance claims have higher costs than others. Let's take a closer look at the most common types of claims in Canada:

Claims under collision coverage

Collision coverage claims are some of the most frequent and most expensive claim costs that can arise following a car accident. Collision claims arise when your vehicle hits another vehicle or object, regardless of fault. Urban areas with dense traffic tend to see the highest rates compared to more rural areas with less traffic.

Collision claims are also among the most expensive to settle, especially nowadays, as the Consumer Price Index for passenger vehicle parts, maintenance, and repair increased by 22.3% from December 2019 to December 2024, which is costing auto insurers more money. For example, Ontario's collision claims ratio reached 79% in 2022 and 82% in 2023, according to Statistics Canada, which can be attributed to this inflation.

Claims under comprehensive coverage

Comprehensive coverage claims cover damage caused by non-collision incidents, including theft, vandalism, hailstorms, fallen trees, fires, hitting an animal, and other severe weather conditions.

These types of claims have increased significantly in the past few years, due primarily to an increase in auto theft in provinces like Ontario and Quebec, as we mentioned. In 2023 alone, theft-related automobile insurance claims reached a record-breaking $1.5 billion in insured losses. The rise in comprehensive insurance claims can also be attributed to the frequency and severity of storms and natural disasters across Canada.

Personal injury claims

Personal injury claims fall under accident benefits coverage. This policy covers the cost of medical expenses, lost wages, rehabilitation, and more when you get into a collision and suffer bodily injuries. According to the Insurance Bureau of Canada, the cost of personal injury claims as a result of vehicle collisions in Canada in 2021 was $2.13 billion. The bureau also reports that the average cost per claim under accident benefits coverage for the same year was $25,441.

Third-party liability insurance claims

Third-party liability insurance covers injuries and property damage you cause to other parties while operating your motor vehicle. According to Onlina Insurance, the average cost of a third-party liability claim in Canada is $15,800. That said, it can easily be more expensive than, given the rising costs of legal fees in Canada, as a direct result of inflation. Notably, the Insurance Bureau of Canada also reports that in 2021, the total cost of private passenger auto insurance claims under third-party liability was $4.5 billion.

Who files more claims? Risk factors

Car insurance claims are equally distributed across all Canadian motorists. Some demographics, driving behaviours, and vehicle choices make some people statistically more likely to file claims compared to others.

Understanding these high-risk factors can help you identify your own possible shortfalls, which can later translate into more affordable auto insurance premiums down the road:

1. Age and driving experience

Young, inexperienced drivers, especially those under the age of 25, are more statistically likely to be involved in a collision than those with more driving experience. Transport Canada reports that while drivers between the ages of 16 and 24 only account for 13% of licensed motorists, they are involved in 23% of all collisions.

Why? This group has less driving experience, making them more likely to engage in high-risk driving behaviours like speeding or driving under the influence. As a result, young drivers pay higher premiums for their car insurance policies to offset their higher risk profile.

At the same time, drivers over the age of 65 are also considered more likely to file claims with their car insurance companies due to slower reaction times, vision limitations, and other health-related factors. Therefore, if you're over the age of 65 and obtain auto insurance, you'll likely have higher insurance costs, even with a clean driving record.

2. Geographic location

Where you live also plays a huge role in how many claims you may file over your life. For example, urban consumers purchasing insurance coverage in cities like Toronto, Vancouver, and Montreal are more likely to be involved in car accidents and fall victim to auto thefts compared to those in rural areas with less traffic and lower crime rates.

3. Driving habits and annual distance travelled

The more time you spend behind the wheel, the higher your risk of being involved in a collision and filing claims with your insurance company. Canadians who drive long distances or commute during rush-hour traffic are more exposed to hazards compared to those who drive infrequently throughout the week.

At the same time, delivery drivers, or those working for Uber or Lyft, are also at risk of filing more claims on average simply because they’re behind the wheel more often.

4. Vehicle type and use

The make and model of the vehicle you have also play a role in how often you may find yourself filing a claim under your auto insurance plan. Some private passenger autos are more prone to vehicle theft than others.

For example, vehicles with the highest theft rates in Canada, according to Équité Association, are the 2021 Toyota Highlander, 2022 Dodge Ram 1500 Series, 2022 Lexus RX Series, 2021 Honda CR-V, and the 2021 Toyota RAV4. If you happen to drive one of these vehicles, you may find yourself filing a claim under your comprehensive coverage one day. At the same time, high-performance sports cars are associated with more speed-related incidents that lead to property damage.

5. Multiple car insurance claims in the past

Statistically speaking, making multiple claims under your auto insurance coverage in the past means you're more likely to file claims in the future. Essentially, insurance companies use past claims history to help predict future behaviour. Therefore, frequent claims, even if you're not at fault, could lead to a higher risk profile, which translates into higher insurance costs.

How insurance claims impact your auto insurance premiums

Filing a car insurance claim can impact your insurance in several ways. Namely, depending on the circumstances of the claim and the accident that necessitated it, it could lead to an increase in your insurance premium. Insurance companies use your claims history as a key factor in calculating your insurance rates, especially if you're at fault for several claims. Below, we’ll explore the types of claims and how they affect your insurance premiums:

One claim vs multiple claims

Having a stellar driving record can also impact how much your insurance rates change after a claim, if at all. A clean driving record is usually one with several consecutive years of claims-free and conviction-free driving. If you fall into this category of driver, your insurance company may not increase your premium, or if they do, it may only be by a small amount.

If you continue to be involved in car accidents, your insurance company is likely going to increase your rates, and possibly by quite a bit. In fact, if you file a high number of claims due to the at-fault accidents or driving convictions you rack up, you may be deemed a high-risk driver, which could lead to a cancellation of your policy. This could make it very difficult (and certainly much more expensive) to obtain auto insurance in the future.

At-fault vs. Not at-fault

If you file a claim for an accident that you were not at fault for (e.g. you are rear-ended on a busy road), your insurance rates are unlikely to increase.

If the accident was your fault, then it is more likely that your insurer will raise your premium. In some cases, with at-fault accident claims, your insurance rate may not change right away. Instead, your insurance company may raise it at renewal time, so be sure to review your policy carefully (this might also be a good time to enlist the help of a broker who can shop around on your behalf to ensure you get the best possible rate).

Additionally, if you find yourself in another car accident within a few years of the first one (this length ranges, but may be five years), your insurer is likely to raise your premium (whether you are at-fault for the accidents or not).

Accident forgiveness

Accident forgiveness is a type of additional coverage that can be added to your auto insurance policy as an endorsement, to protect your driving record and to help prevent your insurance premium from increasing if you have an at-fault accident claim. Coverage varies by province, but if you have this coverage as part of your policy, then an insurer is unlikely to raise your rates even if the accident was your fault.

The loss ratio effect

As we mentioned above, the loss ratio effect is the percentage of insurance premiums paid out in claims throughout the year. If this ratio is above 80%, it means the insurance company experiences high losses, as it did in 2024.

So, what does that mean for your insurance costs? The higher the ratio, the more you can anticipate your insurance costs to increase, as insurers need to recover their losses and maintain their profitability.

To file or not to file?

Whether you've been in a minor accident with no damage or have too many claims on your insurance history, knowing what circumstances should prompt you to notify your insurance company, while others may be worth paying out of pocket. Take a look at some example scenarios where you should file a claim with your insurance provider and when it may not be worth filing a claim:

When to file a car insurance claim

Below, we’ll discuss when it makes sense to file a car insurance claim:

• You get into a serious car accident that results in significant damage to your vehicle or another person’s vehicle.

• You get into a car accident and someone is injured (either you or another person, such as a pedestrian, passenger, or other driver) as a result of the accident.

• You have reason to suspect insurance fraud following an accident (e.g. something feels off about the information provided by the other driver involved in the collision).

When to think twice about filing a claim under your automobile insurance

Below are situations where you may want to think twice before filing a car insurance claim:

• The cost of the damage incurred (whether to your car or the other person’s car) may only be slightly more than your auto insurance deductible.

• You can afford to pay for the damage out of pocket, so you withdraw your claim.

• The collision only resulted in very minor damage.

• The damage caused in the collision was your fault, and you were the only one involved (e.g. you backed out of the driveway and hit your mailbox).

If you get into an automobile accident and are unsure whether to file a claim, contact a broker at BrokerLink.

How to avoid filing claims with your car insurance company

Although some car insurance claims are unavoidable, others can be prevented by being proactive to mitigate your risk profile with your insurance provider, get affordable insurance coverage, and avoid collisions. Here’s what to do next:

Practice safe driving

Below, we’ll cover practical tips for safe driving:

• Avoid distracted driving: Stay off your phone by keeping it out of reach. Know where you're going before heading out onto the road to avoid looking at your GPS. Distracted driving is one of the leading causes of car accidents in Canada, and is linked to 22.5% of fatal crashes and 25.5% of serious injury collisions in 2021.

• Follow posted speed limits: Speeding not only increases the chance of being involved in a collision, but also increases the severity of property damage and bodily injuries, which will lead to more expensive claims costs.

• Leave space between vehicles: Keep at least two car lengths between you and the vehicle ahead of you to give yourself enough time to react if they slam on their brakes.

• Always signal your intent: Always use your turn signals and give other motorists enough time to understand your intent. This simple habit prevents miscommunication that often leads to collisions.

• Drive defensively: Always assume other drivers on the road won't follow traffic laws. Stay vigilant, yield if necessary, and always keep your concentration on the road ahead of you.

Seasonal driving precautions

Here are additional precautions to consider for seasonal driving:

• Winter tires: In provinces like Quebec and parts of British Columbia, winter tires are mandatory during certain months of the year. Even though they are optional in other provinces, consider installing them on your vehicle as they can reduce your braking distance on ice and snow by 25%.

• Avoid driving in severe weather conditions: Reduced visibility due to fog, heavy rainfall, and snow, along with slippery, icy roads, can increase your risk of being in an accident. If possible, avoid driving in severe weather conditions.

• Keep an emergency kit in your vehicle: Include a first aid kit, jumper cables, a blanket, and some water to stay safe in the event of a breakdown.

Theft Prevention Tips

Below, we’ll cover theft prevention tips:

• Lock your doors and keep valuables out of sight: A lot of auto thefts can be deterred by keeping your valuables out of sight and by locking your doors.

• Instal anti-theft devices: Steering wheel locks, kill switches, alarms, and immobilizers can deter potential auto thieves and give you a discount on insurance costs.

• Park your vehicle in a secure area: If parking outdoors, aim for a secure parking lot with security cameras. If you need to park on the street, choose a well-lit area close to traffic.

• Instal a tracking device: Put an AirTag or other tracking device in your vehicle to help with recovery efforts if your vehicle is ever stolen.

Invest in a dash cam

Here’s why a dash cam is a smart investment:

• Always record: Providing video evidence in the event of a collision dispute can protect you from false claims and help you recover losses if you are involved in a hit-and-run.

• Deter fraud: Some drivers make an effort to stage accidents for insurance money. Installing a dash cam can offer financial protection against these incidents.

Perform routine vehicle maintenance

Here’s why routine vehicle maintenance is so important:

• Take care of your car: Check your brakes, rotate and inflate tires, change your oil, top up fluids, and inspect lights regularly.

• Fix minor issues: Fix potential issues before they become bigger problems.

What to do if you need to file a claim under your auto coverage

Accidents happen, even when you're the safest driver on the road. If you find yourself in a situation where you need to file a car insurance claim with your insurance company, follow the steps below:

Step 1: Make sure everyone is safe

The first thing you need to do at the scene of a car accident is make sure you, your passengers, and other motorists involved are safe. If you're hurt, immediately contact 911 and request medical assistance.

Afterward, move your vehicle to the shoulder of the road if possible. This will prevent traffic congestion and reduce the risk of a car pile-up as you wait for assistance. Don't forget to turn on your hazard lights to warn other travellers that there has been an incident.

Step 2: Gather evidence

Now, you'll want to gather evidence from the scene to support your insurance claim. Collect the following:

• Names and contact info for all drivers and passengers involved in the accident.

• License plate numbers of all vehicles.

• Driver’s licence numbers.

• Insurance provider names and policy numbers.

• Location, date and time of the incident, weather conditions.

• Photos or videos of vehicle damage, the scene, and any injuries.

• Names and contact information of any witnesses.

Step 3: Report the collision to police

If you've suffered injuries, you'll need to contact the police. If not, depending on the extent of damage to the vehicles, you may also be legally required to notify law enforcement. The reporting threshold will vary between provinces.

For example, in Ontario, any collision involving more than $2,000 in combined damage must be reported. In British Columbia, $10,000 worth of damage must occur.

Step 4: Contact your insurance provider

Once you're home, you'll need to contact your auto insurance provider and report your claim. At this time, an insurance agent will ask you a series of questions about the collision. Be prepared to stay on the phone for a while as they record your claim.

Step 5: Submit supporting documents

Once your claim is underway, you may be asked to provide the following to your claims adjuster:

• A written statement of what happened.

• A copy of the police report (if applicable).

• Photos or videos taken at the scene.

• Contact information of others involved

At this time, your adjuster will review the evidence you've provided. Be patient, this can take time.

Step 6: Get a repair estimate

After your documents have been submitted, you can go ahead and get a repair estimate for your property damage. You may be asked by your insurance provider to visit an auto repair shop from a pre-vetted list, or you may be able to choose your own.

Step 7: Close your claim

Once your repair estimates are approved by your insurance adjuster, you'll either be able to repair your vehicle before you're provided compensation, or after. Now that your vehicle is repaired, you'll sign a release document with your insurance company that states you will no longer be able to pursue your claim in the future and that you've accepted your compensation. If you're still unsure about what to do when filing a claim under your car insurance policy, contact the experienced brokers from BrokerLink for assistance!

How many car insurance claims are too many?

There is no set number of car insurance claims that is too many. However, the more car insurance claims you have in your insurance history, the more expensive your insurance rates will be.

Contact BrokerLink for all your auto insurance needs

Filing an insurance claim can be overwhelming, but it doesn't have to be. If you still have questions about filing a claim or about your current car insurance policy, the experienced brokers at BrokerLink are here to help!

We can provide expert advice on whether filing a particular claim is worthwhile and can even offer tips on how to navigate the claims-filing process.

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FAQs on car insurance claims

Is it worth filing a car insurance claim with my insurance company over a dent?

The answer is it depends. The factor it largely depends on is the cost of the damage. For example, if the cost to repair the dent in your vehicle is $1,100 and you have a $1,000 deductible on your auto insurance policy, the amount the insurer would potentially cover you for is only $100. At this point, you may be better off paying for the repair yourself rather than having the claim be on your record and potentially increase your rates.

How many car insurance claims can I file annually?

Car insurance experts will tell you that there is no limit to how many claims a policyholder can file each year. Therefore, you can technically file however many claims you want. However, filing too many claims is generally unwise as it can lead to a significant increase in your rates and may even cause you to lose your coverage. If you think you may have filed too many claims in the past year, pay close attention to any policy changes come renewal time, as your insurer is likely to raise your premium and may even add a clause in your policy about the number of claims you can file.

What is an example of a minor claim that may not be worth filing for?

The definition of a minor claim varies from person to person and insurance provider to insurance provider. That said, examples of minor incidents that may not be worth filing a claim over include small dents or scratches or broken side mirrors. Generally speaking, it is more cost-effective to file claims relating to major incidents of damage rather than minor ones, especially if you have a high deductible.

If you have any questions, contact one of our local branches.