New $5,000 Threshold on Collision Reporting in Ontario
Starting January 1, 2025, Ontario drivers will face a significant change in how vehicle collisions are reported. The Ministry of Transportation has announced an increase in the threshold for property damage-only collisions from $2,000 to $5,000. This means that if you’re involved in a minor accident and the total damage for all vehicles or property damage is less than $5,000, you are no longer required to file a collision report with the collision reporting centre.
This update is part of the province’s ongoing Red Tape Reduction initiative, aimed at modernizing outdated policies and improving the efficiency of public services. For Ontario motorists, this change brings both opportunities and responsibilities. It’s essential to understand what this new rule means, how it will affect your insurance coverage, and what steps you should take after an accident.
Whether you're driving through Oshawa, Port Perry, or anywhere else in Ontario, staying informed can help protect your vehicle, your wallet, and your peace of mind.
Understanding the New Reporting Threshold
The updated collision reporting guideline reflects changes in the auto industry, where newer vehicles are more expensive to repair, and minor damages can quickly add up.
This shift in policy acknowledges that the original $2,000 threshold, set nearly a decade ago, no longer aligns with the reality of vehicle repair costs. Cars today are equipped with advanced technology, sensors, and cameras that significantly raise the cost of even small repairs. By increasing the reporting threshold, the Ministry of Transportation is helping reduce unnecessary traffic to collision reporting centres and allowing drivers more flexibility in handling minor accidents.
It's important to note that a report is still required in specific situations, such as:
- When someone is injured in the collision
- If damage is caused to public property or another vehicle that exceeds $5,000
- If the incident involves a cyclist or pedestrian
- If a criminal act like impaired driving is suspected
These rules fall under the Ontario accident report requirements and are designed to balance efficiency with accountability. Knowing when collision reporting is necessary can help you stay compliant with Ontario collision reporting law and avoid potential legal or insurance issues down the road.
Implications for Motorists and Insurance
So, what does this mean for your insurance, and what happens if you don’t report a car accident in Ontario?
While the new rule gives you more discretion in whether to report a minor accident, failing to report a collision when required can lead to problems with your insurance provider. If you’re involved in a crash that meets the threshold or legal criteria and you do not file a report, your insurer may deny your collision claim, or you could be found at fault during the claims process.
Even in situations where reporting isn’t mandatory, informing your insurance broker can be a wise move. Some drivers may assume they’re saving money by not reporting minor incidents, but if hidden damage surfaces later or if another party files a claim, the consequences could be costly.
Your best bet is to consult your insurance broker immediately after an incident, regardless of the damage estimate. At PetleyHare, our experienced team can walk you through the car accident reporting process and help you understand what makes sense for your situation.
If your vehicle is insured with collision coverage, reporting the accident accurately helps ensure your repairs are covered, and your claim is processed smoothly. Skipping this step could also affect your driving record and lead to higher premiums down the road.
Learn more about auto insurance options that include collision protection and support during the claims process.
Benefits of the New Threshold
While there are some concerns about misjudging damage estimates or underreporting, the new $5,000 threshold offers several advantages for drivers and insurers alike.
One major benefit is reduced congestion at Ontario’s collision reporting centres. These facilities are often overwhelmed with minor incidents that don’t necessarily require formal investigation. By eliminating the need to report low-impact property damage, resources can be focused on more serious collisions that demand attention.
Additionally, this policy shift streamlines the claims process. With fewer minor accidents being processed, insurance providers can respond more quickly to higher-priority claims, reducing wait times and improving the overall experience for customers.
For Ontario drivers, this change introduces more autonomy and efficiency. You no longer need to spend hours waiting to file a report for a scraped bumper or dented fender, provided the damage is below the new threshold.
From an industry perspective, the update helps align accident reporting requirements with current economic conditions and the evolving technology in vehicles. The result is a more modern and responsive system that benefits everyone involved.
Stay Informed and Protect Your Coverage
To make sure you’re prepared for these changes, here are the key things every Ontario driver should keep in mind:
- Know the threshold: You only need to report a collision if the combined damage exceeds $5,000, someone is injured, or if a criminal act like impaired driving is suspected
- Assess damage carefully: It’s easy to underestimate the cost of repairs, especially with newer vehicles. When in doubt, contact your broker for advice.
- Understand your insurance: Review your insurance policy to know what is covered and how the claims process works under the new rules.
- Keep documentation: Take photos, exchange information, and record any relevant details—even if you don’t plan to report the accident. This could protect you if questions come up later.
- Report when necessary: If you're unsure about your reporting obligations, it’s better to err on the side of caution and speak with your insurance provider.
Reach out to our Oshawa office or Port Perry team to speak with a local insurance expert. We’re here to help you stay informed and protected.
Count on PetleyHare for Expert Insurance Guidance
At PetleyHare, we’ve been helping Ontario drivers navigate the car accident process for over 100 years. Whether you need help with a collision claim, a policy update, or just have questions about what to do next, we’re always just a phone call or message away.
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