Car Insurance

Car Insurance

MYTH: When I’m injured in a car accident, all my medical expenses are paid for by my government provincial health plan.

FACT: Car insurers pay out more for medical rehabilitation costs in Canada than do government health insurance plans, workers’ compensation plans or private health care plans combined.

Helping you return to health if you are in a car collision is one of the most important things car insurers do. Every year, car insurers pay at least $2 billion for the medical rehabilitation of injured Canadians. Insurers pay in three ways:

• Through the Accident Benefits portion of car insurance policies. Accident benefits (or no-fault benefits) are paid directly to a person injured in a car collision, regardless of who caused the injuries.
• Through the tort system. If you're in an accident that was caused by someone else and your medical and other needs are more than what is covered by the Accident Benefits portion of your policy (the amount of coverage differs from province to province), you may be able to sue the at-fault driver for the additional costs. The insurer of the at-fault driver pays for what you receive as a result of your court case.
• Through health care levies. Often, medical costs resulting from car accidents are paid through government health care plans rather than car insurance policies. But car insurers pay governments back for these costs through provincial health care levies. In total, Canadian car insurers paid about $200 million in health care levies last year.