2025 Increases: Statutory Deductibles And Thresholds – A Continued Legislated Barrier To Full Recovery

Did you know that if you have been hurt in a motor vehicle collision seriously enough to receive an award for pain and suffering, it may be reduced by $46,790.05? This amount is known as the statutory deductible and, worse yet, it is tied to inflation and increases each year.

If you are injured in a motor vehicle collision in Ontario, you have the legal right to sue the at-fault parties. The Insurance Act governs motor vehicle claims. Under the Act, any amount awarded for pain and suffering in court or settlement negotiations is subject to a statutory deductible. The legislative purpose of the deductible is to reduce motor vehicle litigation by deterring claims with modest injuries. Unfortunately, this creates an unfair barrier to recovery for victims and places more money in the hands of insurance companies.