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A great many people worry about being able to keep the cost of their vehicle insurance down. Some that are more experienced know that there are a lot of things that can raise the price of it. One of the concerns is if one has a minor accident. What will this do to the insurance rates?

What is a Minor Collision?


Every insurance company sets its standards. They all have a set of rules and regulations that they must follow. Aside from this, they can set more rules and guidelines that they will use. It may be those that apply to determining what a minor collision is.

In Ontario, there are guidelines for minor collisions. The accident is minor if the damage is under $2,000.

Who Was at Fault?

Insurance Companies want to know who was at fault for the accident. They create their premiums based on what they know about a driver. If the driver was at fault, then the Insurance Company needs to know this.  It is important because if the insured is at fault, their rates may go up. It can even be the case if there are no charges. Or perhaps also if the police report does not show this.

The Insurance Company’s Investigation

The Insurance Company will do a thorough investigation of the accident. One of the things they will do is take statements. It will be statements from the drivers and passengers. They will also receive statements from any witnesses. Sometimes there are photographs of the scene. If so, the Insurance Company will want to review these as well. Also, they may look at photos of the damage to the vehicles.

Plus, the insurance investigator will gather data about the accident scene. They will take a careful look at all the signage and any other details that may be pertinent.

Fault Determination Rules

Insurance Companies will use the Fault Determination Rules.

It is a set of rules used in Ontario. It is the rules used by the Insurance Companies. They must follow these rules to help determine who was at fault. It doesn’t matter who the Insurance Company is. If the accident took place in Ontario, they must follow these rules. In other provinces, there may be different sets of rules.

These rules are detailed. They give many examples and explicit diagrams.

Both Drivers at Fault

It is not always clear about who was at fault. Sometimes both parties are at fault.  Both drivers may have done something that contributed to the crash. In these cases, the Insurance company has to determine the percentages of fault.

Insurance Companies Working Together

The shared fault may mean two insurance companies need to work together. Each of the companies will pick up the cost of their specific client. From there they will then determine if there is going to be a premium increase. If so, the Insurance will determine the cost.

No-Fault Insurance Confusion

Some think that with no-fault insurance there is no need to determine who was at fault. It is not the case. It means the Insurance Company will pay the claim. No matter who was at fault. It is not a sign that neither driver was not at fault.

Is it Worth it to Pay for Accident Forgiveness?


There are a lot of Insurance Companies that offer accident forgiveness. It may be part of the insurance package the insured has bought. Also, it can be an endorsement.  It will cost extra.  No matter what if the insured has this coverage protection is in place. The protection means that for their first accident it is not held against them. In respect to the possibility of an increase in the insurance premiums.

For many, they feel this is an excellent Insurance to have. Yet, it is not available to everyone.  Plus, there are some significant restrictions that come with it. Most insurance companies set qualifications for it.  There are two significant benefits to this insurance. One is the insurance rates will not go up. Also, the accident should not appear on the driver’s record.

How Much Does Insurance Go Up After a Minor Accident?

The Insurance Companies are going to consider several different factors. It is as it pertains to any accident.  If it is for minor accidents, they are not going to be as concerned. It is because the cost of repairs will likely be minimal. It is when compared to more severe accidents.

If the insured is not at fault, chances are the insurance will not increase. Yet, this is not always the case. Some insurance will go on statistics. The statistics may show that the driver is more probable to get into another accident. So, in this case, the Insurance Company may raise the premiums a minimal amount.

There may be a chance the Insurance Company perceives the insured as a valuable customer. It may be so when the insured has been with the Insurance company for a long time. Also, if there have not been any other claims submitted during that time., it is good.  A no premium increase is almost like a loyalty reward.

How much it will go up will depend on many different factors.

How Long Does an Accident Affect Your Car Insurance?

On average the accident could remain on the driving record for three years. Again, it will depend on the circumstances of the accidents. If might be a minor accident that took place in Ontario. Plus, if it was not reported it might not show on the record. Also, the insurance company may not include it as a part of the driving history.

The accident could affect premiums up to three years.

Taking All the Precautions


Any accident even minor can have repercussions when it comes to insurance. For this reason, everyone must be cautious even of minor accidents. There are opportunities to challenge the findings of an accident. It is when the insurance company has determined who was at fault.

About the Author: Ashley Miller

Ashley is an insurance content professional and very knowledgeable on all related subjects. Ashley has over 12 years of insurance content writing experience working with various insurance companies throughout her career.