When a car accident occurs, both the police and insurance companies get involved. Even in provinces with no-fault insurance, the police determine whether anyone broke the law, while insurance companies identify who was responsible in order to adjust the at-fault driver’s premiums appropriately.

For example, if you rear-end the car in front of you while trying to stop on an icy road, the police may decide that neither driver is legally at fault. However, for insurance purposes, you would be considered at fault because you rear-ended the other car.

How it works. Depending on your province, insurance companies use either past court rulings or government guidelines to determine fault and then send a detailed explanation of the decision.

Sharing the blame. In many cases, both drivers play a role in causing the accident, so insurance companies assign a percentage responsibility: for example, 30 per cent to driver A, and 70 per cent to driver B.

The bottom line. If you choose additional Accident Forgiveness coverage from The Co-operators, and you’ve been licensed and accident free for six years, your accident may be forgiven. Otherwise, your premium will increase when it comes time to renew your policy; the amount will depend on your specific situation.

Even in provinces with no-fault auto insurance, it pays to drive safely. Learn more about car insurance available from The Co-operators.