Like many others, Ontario drivers may be confused by the term "no-fault insurance." It does not mean that a person who causes an accident pays no penalty. The term means that regardless of fault, the insured person will receive compensation no matter who caused the motor vehicle accident. However, the at-fault driver may face increased future premiums and a notation in his or her insurance record.
The main difference between no-fault insurance and other kinds of insurance is that the claimant deals with his or her own insurer. In most cases, an injured person would have to pursue the at-fault driver for compensation to pay for lost income, suffering and other benefits. With a no-fault insurance policy, an injured person will have instant access to compensation from his or her own insurance carrier.