Updated on August 12, 2026 | Originally written: August 25, 2025

An at-fault collision won't always raise your car insurance premiums. Depending on where you live and circumstances of the accident, your rate may stay the same thanks to accident forgiveness coverage, provincial regulations, or insurer-specific options like claim repayment or buying back a claim.

In Ontario, certain minor at-fault accidents are protected under the province's Minor At-Fault Accident rule, which limits when insurers can increase premiums. In B.C. and Manitoba, public insurers offer their own minor accident forgiveness programs for qualifying drivers. Whether your premium increases depends on the severity of the collision, your driving history, and your province.

According to the Financial Services Regulatory Authority of Ontario (FSRA), if you are found to be 50% or more at fault, your premium could go up the next time you renew your policy. An increase in your insurance rate depends on circumstances of the collision. Your insurer is required to notify you of any changes in premiums as a result of an at-fault incident.

There are a few instances where an at-fault collision won’t impact your insurance rate. 

Can accident forgiveness prevent a rate increase in Ontario?

Accident forgiveness coverage in Ontario can prevent a rate increase after your first at-fault collision, but only if it was purchased before the accident occurred. Drivers must also have been accident-free and licensed for six years to qualify.

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 for an at-fault collision to clear from your record will depend on where you live, the nature of the accident, and your 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.

Read more: How to check your Ontario driving record

Do minor at-fault accidents affect insurance in Ontario?  

In Ontario, a minor at-fault accident will not affect your insurance rate if no one was injured, no insurer paid out claims, and total damage was under $5,000 per vehicle or property—covered entirely out of pocket by the at-fault driver. This protection applies once every three years.

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.  

Here are 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. This protection is specific to Ontario. Other provinces do not have equivalent regulation, though some insurers may offer similar leniency on a case-by-case basis.  

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

How much does accident forgiveness coverage cost? 

Accident forgiveness coverage typically adds between $30 and $100 to your annual premium, depending on the insurer, according to David Mayer, director of insurance at Rates.ca. 

The cost varies based on your insurer's pricing model and whether the coverage is offered as a standalone add-on or bundled into a broader policy package.

Can you avoid a rate increase after an at-fault accident in B.C. or Manitoba?

Yes, both B.C. and Manitoba have programs that can help qualifying drivers avoid a rate increase after an at-fault collision, though strict conditions apply.

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 thoanse in B.C.), ICBC may forgive your first at-fault accident and your premium won’t change.

ICBC also allows drivers to repay the cost of a claim, known as claim repayment, to prevent it from affecting their premium. This can be worthwhile if you want to preserve your claim forgiveness status, though you should confirm current eligibility conditions with ICBC or a broker before assuming you qualify.

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 your claim from negatively affecting your Driver Safety Rating, a score insurers use to assess driving risk and calculate how much you pay for insurance.  

However, your at-fault 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 at-fault claim is relatively low, and the driver wants to maintain a clean insurance record. Alternatively, if both drivers involved in the incident agree to settle privately—without filing a claim through MPI—the accident won’t affect your premium or licence costs.

Read next: How your claims history affects your car insurance premium

What about drivers in Alberta and other provinces?

Outside of Ontario, B.C., and Manitoba, most provinces do not have a regulated minor accident protection rule. An at-fault collision is more likely to result in a premium increase at renewal in other Canadian provinces.

In Alberta, for example, an at-fault accident can affect your eligibility for the province's good driver rate cap for up to six years. However, many private insurers across the Canada offer accident forgiveness as an optional add-on, so the impact of a first at-fault collision can still vary depending on your policy. If you're unsure what protections apply to you, speak to your insurance broker before and after any incident.

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.  

Learn more: 15 ways to get cheaper car insurance 

Frequently asked questions

1. Will an at-fault claim increase my car insurance premiums?

   Not always. Whether your premium increases depends on the severity of the collision, your driving history, and your province. In Ontario, certain minor at-fault accidents are protected under the province's Minor At-Fault Accident rule, which limits when insurers can increase premiums. If you are found to be 50% or more at fault, your premium could go up the next time you renew your policy, according to the Financial Services Regulatory Authority of Ontario (FSRA).

2. For how many years does an at-fault claim remain on my driving record?

   How long it takes for an at-fault collision to clear from your record will depend on where you live, the nature of the accident, and your 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.

3. Which provinces in Canada have accident forgiveness programs for a first at-fault collision?

   Ontario, B.C., and Manitoba all have programs that can help qualifying drivers avoid a rate increase after a first at-fault collision, though strict conditions apply in each province. In Ontario, accident forgiveness coverage can prevent a rate increase after your first at-fault collision if it was purchased before the accident occurred, and you've been accident-free and licensed for six years. In B.C., ICBC offers claim forgiveness for drivers who have been collision-free for 10 years and have 20 years of driving experience. In Manitoba, drivers insured through MPI can buy back an at-fault claim to prevent it from affecting their Driver Safety Rating. Outside of these three provinces, most provinces do not have a regulated minor accident protection rule.

4. How much does accident forgiveness coverage cost?

   Accident forgiveness coverage typically adds between $30 and $100 to your annual premium, depending on the insurer, according to David Mayer, director of insurance at Rates.ca. The cost varies based on your insurer's pricing model and whether the coverage is offered as a standalone add-on or bundled into a broader policy package.