I lent my car to James, my son. He’s thirty-two and helping me run errands while his mother is in the hospital. Yesterday, he was rear-ended. He’s badly hurt and can’t go to work. He doesn’t have a car of his own, but he’s covered for loss of income benefits through my insurance, right?
Wrong.
As of July 1, 2026, the no-fault benefits in your standard automobile policy in Ontario extend only to you, your spouse and your dependents. Unless James is living at home rent-free and eating out of your cupboards, he’s not covered.
He’ll need to apply through the disability insurance policy at his workplace.
If he doesn’t have disability insurance at work, he can apply through the provincial Employment Insurance – Disability program.
Since he was rear-ended, he may be able to bring a claim against the at-fault driver for loss of income (and other compensation), but that claim will take months if not years to settle or come to trial.
There is an often-forgotten tool available to him in the Ontario Insurance Act to force the other driver’s insurance company to pay his loss of income on an interim basis. Section 258.5 of the Act says:
Advance payment
(2) If the insurer admits liability in respect of all or part of a claim for income loss, the insurer shall make payments to the person making the claim pending the determination of the amount owing.
The wording of the section is important. It requires James to have notified the other driver of his claim. That’s the only way for the other driver’s insurer to become involved. The section also requires that the other driver’s insurer admit liability for the claim.
This last stipulation has two parts.
The first is that the other driver’s insurer admit that it’s driver was at-fault.
The second requirement is that the other driver’s insurer admit that James has actually suffered an income loss.
How does James take advantage of this section of the Insurance Act?
He hires a lawyer who will:
Once these steps are taken, the other driver’s insurance company will either pay 70% of James’ net loss of income, or it will refuse.
If it refuses, it may be required to pay a premium on his legal fees should his claim proceed to trial.
Isn’t that only fair? It is only fair but James is being asked to subsidize the multi-billion-dollar insurance company. The leading insurer in Ontario has a market capitalization of over $30 billion. But that’s a discussion for another day.
In summary, James’ best option is to get in touch with an injury lawyer immediately and ask about options to help him cover his loss of income. The law can be unforgiving when it comes to delay.
If you or a loved one has been injured in a car accident and are struggling with lost income, contact Bergeron Clifford Injury Lawyers for a free consultation. Serving Ottawa, Kingston and communities across Eastern Ontario, our team can help you understand your rights and explore your options for recovering lost income after an accident.
KINGSTON | OTTAWA | PERTH | CARLETON PLACE | PEMBROKE
Consistently ranked as a Top 10 Injury Law Firm by Canadian Lawyer Magazine.
SOCIAL MEDIA:
ALMONTE | AJAX | AMHERSTVIEW | ARNPRIOR | ATHENS | BANCROFT | BELLEVILLE | BOWMANVILLE | BROCKVILLE | CARLETON PLACE | COBDEN | COBOURG | CORNWALL | CARDINAL | DURHAM | ELGIN | HASTINGS | HAWKESBURY | IROQUOIS | KANATA | KEMPTVILLE | KAWARTHA LAKES | KINGSTON | LINDSAY | MORRISBURG | NAPANEE | NEPEAN | NORTHUMBERLAND | NUNAVUT | ORLEANS | OTTAWA | PEMBROKE | PERTH| PETERBOROUGH | PICKERING | PICTON | PORT HOPE | PRESCOTT | RENFREW | SMITHS FALLS | STITTSVILLE | TRENTON | WHITBY
ALMONTE | AJAX | AMHERSTVIEW | ARNPRIOR | ATHENS | BANCROFT | BELLEVILLE | BOWMANVILLE | BROCKVILLE | CARLETON PLACE | COBDEN | COBOURG | CORNWALL | CARDINAL | DURHAM | ELGIN | HASTINGS | HAWKESBURY | IROQUOIS | KANATA | KEMPTVILLE | KAWARTHA LAKES | KINGSTON | LINDSAY | MORRISBURG | NAPANEE | NEPEAN | NORTHUMBERLAND | NUNAVUT | ORLEANS | OTTAWA | PEMBROKE | PERTH| PETERBOROUGH | PICKERING | PICTON | PORT HOPE | PRESCOTT | RENFREW | SMITHS FALLS | STITTSVILLE | TRENTON | WHITBY
