Ontario's New $5,000 Collision Reporting Threshold

The Ministry of Transportation is making some changes to collision reporting. Starting January 1st, 2025, they're raising the threshold for collision reporting for Property Damage Only (PDO) collisions from $2,000 to $5,000. You don't have to report minor collisions unless the damage is more than $5,000. This change is part of the bi-annual Red Tape Reduction Omnibus, and it's intended to make our roads safer while simplifying the reporting process. We're excited to see how it all works out.

The car industry is changing rapidly, and vehicles are becoming more advanced. Because of this, how we measure a car accident's severity needs to change, too. The current threshold of $2,000, set nine years ago, may have been appropriate at one point, but with the changing times, what is now considered a minor collision has shifted. Therefore, adjusting is necessary to reflect inflation and evolving dynamics in the automotive landscape.

The new rules say that if your car hits something and causes damage to public or private property, but nobody gets hurt, you only need to report it if the total damage is over $5,000. But you still need to report if someone gets hurt or if it's a door-related collision. This helps keep everyone accountable and safe.

A door-related collision is when a driver or passenger opens a car door unsafely into the path of oncoming traffic, resulting in a collision or swerving.

So, what does this mean for Ontario's motorists and your collision insurance?

Firstly, the new threshold means to make things easier for everyone involved. If you get into a minor accident and nobody gets hurt and there's not much damage, you don't have to report it. This is good news because it helps save time and hassle for everybody.

Secondly, the new rules say that you don't have to report a collision unless it's severe. But don't worry; you still have the freedom to report it if you think it's necessary. The good thing is that you now have more flexibility to decide based on your situation.

Moreover, the recent changes in reporting thresholds have made it clear that we need to stay on top of things from an insurance perspective. Auto insurance policies and procedures may also need to change as the landscape keeps changing to keep up. PetleyHare Insurance Brokers and other insurers will dedicate their time to ensuring clients stay informed and that their policies are up-to-date with the latest regulations.

Some final thoughts…

As we go through these changes, we must work together and keep each other in the loop. PetleyHare Insurance Brokers is teaming up with other industry players and regulatory bodies to stay up-to-date and give our clients the latest info they need to remain protected.

So, Ontario has decided to raise the collision reporting threshold. This is good because it will make things easier and safer for everyone, and drivers will have more flexibility when reporting an accident. Overall, we believe it's a positive change that will make a big difference for drivers in Ontario.

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