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Understanding the Increase of Statutory Deductibles in Ontario Motor Vehicle Accident Claims for 2025

Ontario’s motor vehicle accident claims are impacted by various financial thresholds and deductibles that determine how much an individual can claim for personal injury compensation. In 2025, Ontario’s Financial Services Regulatory Authority of Ontario (FSRA) has announced an increase in the statutory deductible amounts, which will affect many drivers involved in motor vehicle accidents.

As of January 1, 2025, the general damages threshold increases to $155,965.54. General damages below this threshold will be subject to a deductible of $46,790.05.

Family Law Act (FLA) damages threshold increases to $77,982.13. FLA damages below the threshold are subject to a deductible of $23,395.04.

What is a Statutory Deductible? 

A statutory deductible is a fixed amount that must be subtracted from a claimant’s compensation for pain and suffering if they have suffered a non-economic loss in a motor vehicle accident. In Ontario, this deductible applies to damages awarded for general pain and suffering resulting from an accident. Essentially, it serves as a cost burden for the claimant, reducing the amount of compensation they will receive for their injuries.

Deductibles are always considered in negotiating the settlement of personal injury claims arising from motor vehicle accidents. 

What is the Threshold in Ontario Accident Claims?  

Along with the deductible, there is also a threshold that is a requirement in the Ontario Insurance Act that any motor vehicle accident victim must prove to the satisfaction of a Judge that they have sustained a permanent and serious injury to an important physical or mental function in order to qualify to sue for their pain and suffering.

Conclusion

The FSRA’s decision to increase the statutory deductible for 2025 has significant implications for Ontarians involved in motor vehicle accidents. It presents a higher cost burden on accident victims seeking compensation for pain and suffering. Understanding the statutory deductible and threshold is crucial for drivers and claimants navigating the post-accident claims process.

As these changes take effect in 2025, it’s essential for Ontario drivers to be aware of their rights, the evolving claims process, and the potential impact on their compensation. If you or a loved one has been seriously injured in a car accident and have questions about these changes, we are here to help.

This article was written by Personal Injury Lawyer, Maddison Watson. For additional information, please do not hesitate to contact personal injury lawyers Catherine Shearer (catherine.shearer@mckenzielake.com) and Maddison Watson (maddison.watson@mckenzielake.com).

If you require assistance with any Personal Injury matter, speak to a Personal Injury Lawyer at McKenzie Lake Lawyers LLP by calling 519-672-5666 or Catherine Shearer at 226-203-1243.