How does Ontario's Statutory Deductible affect my personal injury case?
If you've been involved in a personal injury case, you might have heard about statutory deductibles. These are the amounts that get subtracted from your payout in personal injury claims. But what exactly are they, and how will the changes in 2025 affect your settlement?
What Are Statutory Deductibles?
A statutory deductible is a set amount that gets taken off your compensation when you’re awarded money for damages (like pain and suffering) in personal injury claims. In places with no-fault insurance, these deductibles reduce the amount you actually receive after an accident.
For instance, if you are awarded $100,000 in settlement, you must consider that a deductible must take place. In 2025, the deductible is currently $46,790.05. As such, the settlement amount would reduce to $53,209.95 after the deductible is taken into consideration ($100,000 - $46,790.05 = $53,209.95).
Here’s where it gets important: the statutory deductible is going up in 2025.
- In 2023, the deductible was $44,367.24.
- In 2024, the deductible was $46,053.20.
- In 2025, it has increased to $46,790.05.
The increase in the deductible amount means that if you are involved in a personal injury claim in the coming years, you would be receiving less compensation for damages, as a larger amount will be deducted from your payout.
Why Are These Increases Happening?
There are a few reasons for the increase in statutory deductibles:
- Rising Insurance Costs: Insurers are facing higher costs, so increasing deductibles helps them keep premiums from going even higher.
- Inflation: As medical and rehabilitation costs rise, insurance companies need to adjust the deductible amounts to manage their financial exposure.
- Encouraging Settlements: By raising the deductible, the goal is to encourage quicker settlements rather than prolonged legal battles.
How Does This Affect You?
If you’re dealing with a personal injury claim, the increase in statutory deductibles means you'll receive a lower payout, especially for pain and suffering. This can be tough, especially if you’re dealing with serious injuries and long-term medical needs. However, having an experienced lawyer can help you navigate these changes and ensure you get the best possible settlement.
What Can You Do?
Stay informed. Understand the new deductible amounts each year and work with a lawyer who can help guide you through the process. An experienced personal injury law firm can assist you in understanding how these changes affect your claim and explore options to maximize your compensation. JSM Law has been helping clients achieve fair settlements for years, and we’re here to support you every step of the way.
With a deep understanding of personal injury law, JSM Law brings years of experience to the table, advocating for clients who deserve justice. We know how to navigate complex cases involving statutory deductibles, insurance negotiations, and maximizing the payout you rightfully deserve. Our team is dedicated to ensuring that the impact of these statutory deductible increases do not hurt your ability to receive fair compensation, reflecting the merits of your case.