When won’t an at-fault collision impact your car insurance rate?

This article has been updated from a previous version.

While at-fault collisions often lead to higher car insurance premiums, there are exceptions.

In some cases, your rate may remain unchanged due to accident forgiveness coverage, provincial regulations, or insurer-specific programs like “buying back” a claim. Factors such as the severity of the collision, your driving history, and your location all influence whether your premium will be affected. 

According to the Financial Services Regulatory Authority of Ontario (FSRA), if you are found to be 50% or more at fault, you could see your premium go up the next time you renew your policy. The amount of the increase depends on the circumstances, but your insurer is required to notify you of any changes at that time.

That said, there are a few instances in which an at-fault collision won’t impact your insurance rate.

How accident forgiveness can prevent a rate increase

Accident forgiveness is additional coverage you can purchase to protect yourself against a premium increase after your first at-fault collision. Drivers who have this optional coverage will have their first collision “forgiven” — so long as they’ve been accident-free and licensed for six years.

It’s important to keep in mind, however, that accident forgiveness insurance cannot be purchased after an accident has occurred. The coverage must be in place before you have an at-fault collision in order to avoid having it increase your rate.

Also, accident forgiveness doesn’t transfer between insurance companies. If you switch providers, your new insurer will review your full driving history, including any at-fault accidents when calculating your premium.

How long it takes an at-fault collision to clear from your record will depend on where you live, the nature of the accident, and the insurance company. Each province has its own guidelines and criteria for accident forgiveness eligibility. Speak to an insurance broker to see if you meet all requirements for your home province.

Do minor at-fault accidents affect insurance in Ontario? 

In most provinces, even a small at-fault accident can lead to a higher insurance premium. But Ontario has a unique rule that protects drivers from rate increases after certain minor at-fault collisions—provided very specific conditions are met. 

To qualify, the accident must involve no injuries, no payments from any insurance company, and the at-fault driver must pay for all damages out of pocket. 

The damage to each vehicle or property must also be under $5,000, and the protection only applies to one minor accident every three years, according to the Financial Services Regulatory Authority of Ontario (FSRA).

Examples of minor at-fault accidents that may qualify: 

• Backing into a pole in a parking lot and paying for the repair yourself 
• Scraping another car while pulling out of a tight space, with both parties covering their own minor damage 
• Knocking over a mailbox or fence and paying the homeowner directly for repairs 

Keep in mind that repair costs can add up quickly, so this rule only applies to the most minor of incidents. And again, this protection is specific to Ontario—other provinces do not have an equivalent regulation, though some insurers may offer similar leniency on a case-by-case basis. 

Ream more: When won’t an at-fault collision impact your car insurance rate?

How at-fault accidents are handled in B.C. and Manitoba

While most provinces penalize drivers with higher premiums after an at-fault collision, British Columbia and Manitoba offer unique options that may help you avoid a rate increase if you meet certain conditions.

British Columbia: Claim forgiveness and partial fault protection

In B.C., the Insurance Corporation of British Columbia (ICBC) offers a claim forgiveness program for drivers with long, clean records. If you’ve been collision-free for 10 years and have 20 years of driving experience (with at least 10 of those in B.C.), ICBC may forgive your first at-fault accident, meaning it won’t affect your premium

ICBC also allows drivers to repay the cost of a claim—known as claim repayment—to prevent it from affecting their premiums. This option is especially useful if you want to preserve your claim forgiveness status for future incidents.

Manitoba: Buying back your claim

In Manitoba, drivers insured through Manitoba Public Insurance (MPI) have the option to “buy back” an at-fault claim. This means you can repay MPI for any costs they covered on your behalf after a collision. Doing so prevents the claim from negatively affecting your Driver Safety Rating, which is used to calculate your insurance premium.

However, the claim will still appear on your driver record, which may be reviewed by insurers or employers.

This option is often used when the cost of the claim is relatively low, and the driver wants to maintain a clean insurance record. Alternatively, if both drivers agree to settle privately—without filing a claim through MPI—the incident won’t affect your premium or licence costs at all.

While being involved in an at-fault collision can impact your insurance rate, these provincial programs show that an increase isn’t always guaranteed. If you do face a rate hike, one of the smartest things you can do is compare car insurance quotes to make sure you’re still getting the best deal for your situation.