Car Accident: Who’s Liable?

This article is an advertorial brought to you by le Groupement des assureurs automobile

Auto insurance compensation rules aren’t always well understood. Here’s how they actually work.

It’s Your Insurer that Establishes your Liability in a Collision

Even if the police come to the scene of an accident, they’re not the ones that establish your liability. Rather, it’s your insurer using the Direct Compensation Agreement (DCA). The DCA, among other things, illustrates most accident scenarios by allocating the level of liability for each driver (0%, 50% or 100%).

For example, you rear end the car ahead of you when the driver suddenly brakes. According to the DCA, you’re the one at fault for the collision (the Highway Safety Code states that every driver must keep a safe distance with the car in front).

Even if the Other Driver is at Fault for the Collision, You’ll be Compensated by your Own Insurer

Your insurer uses the DCA to establish your compensation amount. The Agreement is used by all auto insurers and the aim is to simplify claims settlement. As well as illustrating the various accident scenarios, it also provides for each driver to be compensated directly by his insurer. Insurers therefore don’t exercise their right of subrogation, whereby the party at-fault reimburses the party not at-fault.

Your Level of Liability Impacts your Compensation

If you’re liable, you’ll be compensated if your insurance policy covers the collision. You must then pay a deductible.

If you’re not liable, you’ll be compensated even if your insurance policy doesn’t cover the collision. You won’t have to pay a deductible

To find out more, go to Groupement des assureurs automobiles’ web site at

Share on Facebook

More on the subject

NewsWomen are More Seriously Injured in Car Crashes, Study Shows
Despite the latest advances in vehicle design, technology and safety, women continue to suffer more serious injuries than men when they get into a frontal car crash, even when wearing a seat belt. According to researchers at the University of Virginia’s Center for Applied Biomechanics, belted female occupants have 73 …
BuzzThis is Why You Should Never Put Your Feet on the Dashboard
We’ve all seen people do it. Heck, it might even be you or someone in your family. While enjoying the road in the comfort of the front passenger seat, you decide to take your shoes off and rest your feet on the dashboard, not necessarily thinking about how it might …
Features and TipsShould You Repair or Replace a Broken Windshield?
The windshield makes up 70 percent of the interior of a vehicle. For safety’s sake, it’s important to take good care of it. Indeed, a cracked windshield can impede the driver’s vision and possibly cause injuries to vehicle occupant in the event of a crash. Replacing vs. Repairing According to …
Features and TipsWhat Should You Do After Hitting an Animal on the Road?
Fall is the season when you’re most likely to see wild animals on the side of the road. Unfortunately, this has grim consequences sometimes. According to the Ministère des Transports du Québec, over 7,500 accidents involving large animals (deer, moose, caribou, black bears, etc.) happen each year in our province.