How Do Deductibles Work?

A deductible is a specified amount of money that the insured must pay before an insurance company will pay a claim. Higher deductibles usually mean lower premiums but higher financial risk.

If you’re not at fault for a collision under the standard Ontario policy, there is no applicable deductible. However, you can select an optional deductible of $300 or $500. The amount of the deductible to be applied in these circumstances would be adjusted to reflect the apportioned percentage of fault.

If you have bought optional coverage for collision or upset, and if you’re fully at fault for the damage to your vehicle, the full amount of the deductible applies. If you’re claiming for losses unrelated to a collision (hail dents, for example) your full deductible applies, except in the case of fire or lightning, for which no deductible applies.

You can always ask your broker for clarification on any questions you have.