How Does a Minor Accident Affect Insurance?
If you’ve recently been involved in a minor at-fault accident in Ontario, you might be wondering: how does a minor accident affect insurance? Whether it’s a small fender bender or a parking lot bump, even minor incidents can influence your premiums, driving record, and future insurance applications.
The good news? Ontario’s insurance rules have changed in recent years, and understanding those changes can help you make smarter decisions and avoid paying more than you should.
What Durham Drivers Should Know About Minor Accidents and Auto Insurance
Most drivers in Durham Region have voiced frustrations about rising auto insurance rates. It often feels unfair when premiums increase despite having a clean driving record or never submitting a major claim. It’s frustrating, but insurance rates are based on a number of factors.
Your rate is typically influenced by:
- Driving history and number of years licensed
- Type and age of your vehicle
- Where you live (urban vs. rural areas)
- Usage: personal, business, commuting, etc.
- Claims history and whether you're eligible for any discounts
Since standard auto insurance is mandatory in Ontario, drivers may feel they have no choice but to pay whatever their renewal notice says. However, there are ways to take back some control.
Some drivers consider changing the vehicle they drive, since the car type does affect rates. That usually involves additional costs that may not be realistic. A more practical option is to compare quotes or work with a local insurance broker like PetleyHare. With expert help, you may discover you're eligible for a better rate, especially if the accident happened after Ontario’s insurance reform in 2016.
What Is Considered a Minor Car Accident?
A minor car accident in Ontario typically meets the following criteria:
- No one was injured
- The total damage per vehicle was under $2,000
- The at-fault driver paid all costs out of pocket
- No insurance payouts were made by either party
If these conditions are met, the incident is classified as a minor accident.
Ontario implemented insurance reform on June 1, 2016, to help protect drivers from unnecessary rate increases. Under this reform, insurers are no longer allowed to raise your premiums for qualifying minor at-fault accidents that occurred after this date.
Even so, it is still important to disclose all accident history when applying for auto insurance. An insurer will determine whether the accident meets the minor accident criteria under provincial guidelines.
How Long Does a Minor Accident Stay on Your Record?
In most cases, a minor accident stays on your insurance record for up to six years. This doesn’t necessarily mean it will impact your premium the entire time, especially if it meets the provincial definition of a minor at-fault accident under the 2016 reform.
Some insurers weigh accident history differently. One provider might overlook an old minor incident, while another might still count it in your risk profile.
If you’re not sure whether a past incident is still impacting your rate, a broker at PetleyHare can help you review your file.
How a Minor Accident Affects Insurance Premiums
Many Ontario drivers ask the same question: how much will your insurance go up after an accident?
If you are found at fault for an accident, your insurance premium will usually increase. However, if the accident qualifies as minor under Ontario’s rules and happened after June 1, 2016, your insurer cannot increase your premium because of it. This change was made to prevent small incidents from having major financial consequences.
That said, not all minor accidents are treated equally. If the cost of repairs exceeds $2,000 or your insurer paid any part of the claim, it may not meet the minor accident threshold. Also, having multiple incidents within a short period can lead to higher premiums. For example, two at-fault accidents in three years in Ontario can trigger rate hikes, even if both were considered minor on their own.
To avoid surprises, always review your policy and ask your broker about your accident history and its impact on your premium. A clean record going forward is your best tool for restoring low premiums over time.
Experienced Brokers to Aid Durham Residents with Their Auto Insurance Needs
Drivers in Durham Region, including Oshawa and Port Perry, often qualify for discounts without even realizing it. An experienced broker can help you uncover savings and make sure your premiums are fair based on your history.
At PetleyHare, our brokers can help you:
- Review your driving and claims history
- Confirm whether past minor accidents should still be affecting your rate
- Identify discounts for bundling, safe driving, winter tires, and more
- Explore auto and home insurance bundle options for additional savings
Our team is here to help you update your current policy and find a plan that suits your current situation. Visit our Oshawa office or Port Perry office to speak with someone local.
How Long Does an At-Fault Accident Affect Insurance in Ontario?
An at-fault accident can affect your insurance premiums for up to six years. The length and severity of the impact depend on the type of accident.
For example, a major at-fault accident involving injuries or significant property damage is likely to lead to a larger and longer-lasting increase. A minor at-fault accident, if it meets the criteria outlined under Ontario's rules, may have little to no impact, provided it happened after June 1, 2016.
Maintaining a clean driving record after the incident is the best way to rebuild your insurance profile and lower your premiums over time.
FAQs About Minor Accidents and Your Insurance
Does a minor at-fault accident always increase my premium?
Not necessarily. If the incident qualifies as minor under Ontario rules and happened after June 1, 2016, your insurer cannot raise your premium because of it.
What counts as a minor vs. major accident?
A minor accident involves no injuries and less than $2,000 in damages. A major accident usually includes injury, larger repair costs, or insurance payouts.
Will insurance rates go up after a no-fault accident?
No. If you are not at fault, your rates typically remain the same. However, the incident may still appear on your driving record for transparency.
What if both drivers are partly at fault?
In Ontario, fault can be shared. Even if you are only partially responsible, it can still affect your premium depending on the percentage assigned.
Can I appeal an at-fault decision?
Yes. If you believe you were unfairly deemed at fault, you can provide supporting documentation and request a reassessment from your insurer.
Should I report a minor accident to my insurer?
Yes. Even if no claim is filed, it's important to report the incident so your records are accurate. This helps avoid issues during renewals or future claims.
Protect Your Coverage — Get a Personalized Quote
Minor accidents happen. What matters most is how they’re handled on your record and within your policy. At PetleyHare, we take the time to review your history, ensure your premiums are accurate, and help you get the coverage that fits your life.
Whether you're applying for insurance after a recent accident or reviewing your renewal terms, our brokers are here to help.