If you’ve been injured in a car accident in Ontario, you might assume that any settlement for your pain and suffering will be paid in full. But many accident victims face an unpleasant and costly surprise. Ontario’s statutory deductible could slash your compensation significantly.

The Hidden Deduction: What Is the Car Accident Deductible?

Ontario’s auto insurance system imposes a deductible on claims for pain and suffering (non-pecuniary general damages). This means that unless your damages exceed a certain threshold, a large portion of your compensation is automatically deducted.

As of 2025:
Deductible: $46,790.05
Threshold to avoid the deductible: $155,964.54
(These amounts increase yearly with inflation.)

So, if you are awarded $50,000 for pain and suffering, you’d only receive $3,209.95 after the deductible. Worse still, if your compensation is less than the deductible, you receive nothing.

How This Can Devastate Your Compensation

Many accident victims assume they will be fairly compensated, only to discover the harsh reality of the deductible:

  • A court awards you $50,000; after the deductible, you only receive $3,209.95.
  • If your pain and suffering award is under $46,790.05, you receive nothing.
  • Only if your damages exceed $155,964.54 does the deductible disappear entirely, allowing you to collect the full amount.

Why Does This Deduction Exist?

The deductible was introduced as part of Ontario’s no-fault insurance system, aiming to reduce minor claims and stabilize insurance premiums. However, it often shocks and frustrates accident victims who rightfully expect full compensation for their suffering.

How to Protect Yourself & Maximize Your Compensation

If you’re facing a car accident injury claim, here’s what you can do:

Know Your Rights

Speak with a personal injury lawyer to understand how the deductible applies to your case and what strategies may help offset its impact.

Pursue Additional Compensation

In addition to pain and suffering damages, you may qualify for:

  • Income replacement benefits
  • Medical and rehabilitation benefits
  • Other statutory accident benefits from your own insurance policy

Maximize Your Claim

A skilled lawyer can help you negotiate a higher settlement, pursue additional categories of damages, and strategically structure your claim to minimize the impact of the deductible.

Final Warning: Don’t Let the Deductible Blindside You!

If you’ve been injured in a car accident, don’t assume you’ll receive the full amount awarded. The deductible can drastically reduce your compensation, leaving you with far less than you deserve.

Need legal advice? Contact Barry Evans today to ensure you’re not left empty-handed. Your compensation matters—fight for every dollar you deserve!

Call now for a free consultation at 905-433-1200.