Do different types of collisions impact your car insurance rates?

By: Aya Alhakim on November 25, 2025

Quick takeaway:

Car insurance rates are impacted by the type of collision, with fault being the key factor in determining whether an accident is chargeable or non-chargeable.
Chargeable collisions, where you are 50% or more at fault, can lead to premium increases upon policy renewal.
Non-chargeable collisions, where you are less than 50% at fault, typically do not raise your rates, but frequent claims or uninsured drivers could still have indirect effects.
Accident forgiveness coverage can protect your premium from increasing after your first at-fault collision, depending on your insurer.

Car accidents happen, but not all collisions are created equal – especially when it comes to your car insurance rates.

Whether you're rear-ended at a stoplight or accidentally sideswiped a parked car, the impact can look very different on your insurance bill.

It all comes down to fault and whether the collision is classified as chargeable or non-chargeable.

Chargeable vs. non-chargeable collisions: What’s the difference?

Insurance providers use a straightforward system to determine if a collision will affect your premium. Instead of classifying accidents by damage, they classify them by fault.

What is a chargeable collision?

A chargeable collision is an accident where you are determined to be 50% or more at fault. If you are responsible for causing the incident, your insurance company will likely view it as chargeable.

This means it can lead to an increase in your premium upon your next policy renewal.

Common examples of chargeable collisions include:

Rear-ending another vehicle: In most cases, the driver who hits the car in front of them is considered at fault.
Failing to yield: If you pull out into traffic from a stop sign or a parking lot and cause a collision, you will likely be found at fault.
An at-fault single-vehicle accident: If you slide on ice and hit a guardrail or telephone pole, this is typically considered a chargeable incident.
Making an improper turn or lane change: Sideswiping another car while changing lanes is also a chargeable collision.

What is a non-chargeable collision?

A non-chargeable collision is one where you are found to be less than 50% at fault. In simple terms, if the accident wasn't your fault, you shouldn't see your rates go up because of it.

Examples of non-chargeable collisions often include:

Being rear-ended by another driver: If you are stopped at a red light and someone hits you from behind, you are not at fault.
Being hit by a driver who runs a red light or stop sign: If another driver fails to obey traffic signals and hits your vehicle, that is a non-chargeable collision for you.
Your legally parked car is hit: If another driver damages your vehicle while it is properly parked, you will not be charged.

The key takeaway is that fault is the deciding factor. If you were at fault in a minor parking lot scrape, your rates will likely go up. However, you could walk away from a more significant collision with no premium increase if the other driver was entirely responsible.

Do non-chargeable collisions ever affect your premiums?

While non-chargeable collisions don’t directly raise your rates, there are a few things to keep in mind:

Filing a claim: If you file a single claim for repairs, it won’t increase your premium due to fault, but frequent claims (even for non-chargeable incidents) could flag you as a higher-risk driver over time.
Deductibles: Depending on your policy, you may still need to pay your deductible upfront, even if the at-fault driver’s insurance reimburses you later.
Uninsured drivers: If the at-fault driver is uninsured or underinsured, your own policy might need to cover the costs, which could indirectly impact your rates.

By understanding how non-chargeable collisions work, you can better navigate the claims process and protect yourself from unnecessary costs.

How does a chargeable collision affect your insurance premium?

If you do get into a chargeable collision, you can expect to see an increase in your vehicle insurance premium.

“A chargeable accident would be applied to the person’s insurance history for the next six years,” says Matthew Johnson, customer care manager at Sonnet Insurance. But the rate increase won't be immediate. “This would happen when the policy is renewed, not during the policy term.”

The increase is tied to your Driving Record (DR) — a rating scale that reflects how long you’ve been insured without a chargeable accident. The higher your DR, the better your record. A collision can reset that rating to zero, which is why premiums often jump at renewal.

The impact isn’t permanent. A chargeable accident stays on your record for about six years, but its effect fades over time. Each year you drive without another incident, your DR improves, and your premium gradually drops, rewarding a return to safe driving.

How the Driving Record impacts your insurance premium in Ontario

Most insurers in Ontario and some other provinces use an internal numbered scale to determine how long you’ve been driving and insured without a chargeable collision, called the DR scale. For some insurers like Sonnet, the DR maxes out at six while others could max out at, say, 20.

However, while insurance companies have unique ways of treating a driver’s driving history, they all view the driving safety record as a factor when setting rates.

“If the driver has been driving and insured for four years, they will be a DR 4,” says Johnson. “A chargeable accident sets this DR back to 0 for the first renewal term after the chargeable accident. A DR of 0 is one of the factors that goes into determining rates.”

While the financial impact can follow you for some time, there’s good news: “The accident is weighted less each year that the driver does not have another chargeable accident,” says Johnson. In other words, for every year you remain collision-free, the previous accident matters less.

Learn more: Forty per cent of drivers don’t know if they’re driving a high-risk vehicle - Survey

Other factors that influence premium increases

While fault is the primary driver of a premium increase after a collision, it's not the only variable. Two drivers can be in nearly identical at-fault accidents and see different impacts on their rates. This is because every driver's policy is unique and is calculated using several other factors.

Some of the other elements that influence your premium include:

Your location: Insurance rates vary significantly based on where you live. Urban areas with higher traffic density and more claims typically have higher base rates than rural areas.
Your vehicle type: The car you drive matters. Insurance companies use a rating system, like the Canadian Loss Experience Automobile Rating (CLEAR), to assess vehicles. Cars that are more expensive to repair, are stolen more frequently, or are statistically involved in more claims will have higher insurance costs.
Associated convictions: If your at-fault accident was accompanied by a traffic ticket, like for speeding or reckless driving, the impact on your premium will be even more severe. The conviction and the chargeable collision are treated as separate incidents on your record, compounding the rate increase.
Your previous driving history: A long history of safe, claim-free driving can sometimes lessen the impact of a first-time chargeable collision, especially if you have accident forgiveness.

Can you avoid a premium increase after a collision?

While a chargeable collision can raise your premium, there are situations where your rates stay the same or even ways to protect them.

If the accident is deemed non-chargeable because you weren’t at fault, your rates shouldn’t be affected.

“If you’re rear-ended, and no one in front of you was hit, you would be considered to be not at fault and the accident would not have an impact on your insurance premium,” he says.

If you have accident forgiveness insurance and this is your first at-fault collision, you can also breathe a small sigh of relief. This optional coverage “forgives” your first at-fault or chargeable collision, meaning your premium won’t increase because of that incident. It’s typically offered to drivers with a long, clean history, so check with your insurer to see if you qualify.

Ultimately, whether the damage is minor or major, if you’re not at fault, your premium should remain unchanged.