2025 deductibles and monetary thresholds
In Ontario, the Insurance Act applies a deductible to an automobile accident victim’s award for pain and suffering. Effective January 1, 2025, this deductible for pain and suffering damages is increasing by 1.6% to $46,790.05. This means if your award for pain and suffering is under the monetary threshold of $155,965.54, the deductible applies.
For family members of auto accident victims who make a claim for their loss of care, guidance and companionship, under the Family Law Act, there is also a deductible. As of January 1, 2025, the deductible is set at $23,395.05. If you receive an award under the monetary threshold of $77,982.1, this deductible applies, unless the claim involves a fatality.
The rationale behind these deductibles was to limit the number of minor injury claims and to ensure compensation for those with serious injuries and impairments. Are injuries that are worth $45,000.00 really minor? Is it fair to tell an injured accident victim who is suffering $45,000.00 worth of injuries and impairments that they are not entitled to any compensation for their pain and suffering?
The uphill battle to pursue claims for legitimate injuries is continuing and it appears the insurance industry is winning with each yearly increase in the deductible for pain and suffering.
