By: Jon MacDonald
Recent changes to Ontario’s motor vehicle accident legislation have once again increased the statutory deductibles applied to pain and suffering awards. As of January 1, 2025, higher deductibles for both general damages and Family Law Act claims mean that injured plaintiffs must meet a loftier monetary threshold before receiving the full value of their compensation. The shift directly impacts how personal injury lawyers calculate potential settlements and how insurers approach claim negotiations.
Under the new framework, if a plaintiff’s damages for pain and suffering fall below a specific threshold set by the Financial Services Regulatory Authority of Ontario (FSRA), the insurer is entitled to reduce the award by a prescribed deductible. These amounts are adjusted annually for inflation, making it critical for plaintiffs and counsel to be aware of the recent increases. Failure to account for the new deductibles can result in a lower net recovery than anticipated.
For claimants, this development underscores the importance of strong evidence substantiating the severity and long-term impacts of their injuries. Medical documentation, expert assessments, and witness testimony can all help surpass the threshold at which the deductible takes effect. On the defense side, insurers are more likely to scrutinize injuries and challenge the value of claims, given the potential cost savings when damages remain under the set threshold.
Ultimately, navigating the 2025 statutory deductibles comes down to informed decision-making and thorough preparation. If you or a loved one suffers injuries in a motor vehicle accident, working with legal counsel who understands these evolving benchmarks is essential to maximize your compensation. Even seemingly minor changes to deductibles can make a significant difference in the final award a plaintiff receives.
