Can someone sue you personally after a car accident in Ontario?

The short answer is yes. While Ontario operates under a "no-fault" insurance system regarding accident benefits (meaning you claim medical benefits from your own insurer regardless of fault), this does not grant you immunity from lawsuits. If you are at fault for a car accident that causes significant injury or financial loss to another person, they have the right to sue you for damages.

However, in most standard scenarios, your insurance policy acts as a shield between the lawsuit and your personal assets.

The Role of Your Insurance.

When you are sued, your insurance provider generally steps in to defend you. They will hire a lawyer on your behalf and pay any settlement or court judgment, up to the liability limit specified in your policy (typically $1 million or $2 million). As long as the claim amount is within your coverage limits, your personal savings and home are usually safe.

When You Are Personally at Risk.

You may be held personally responsible for paying damages in specific situations:

• Exceeding Policy Limits: If the court awards the victim damages that exceed your coverage (e.g., a judgment of $2.5 million when you only have $1 million in coverage), you are personally liable for the difference.
• Policy Breaches: If you violated your insurance contract-for example, by driving while impaired, without a valid license, or using the vehicle for an undeclared commercial purpose-your insurer may deny coverage. In this scenario, you would be responsible for your own legal defense and the full cost of any judgment.

The Legal Threshold.

It is also important to note that Ontario law includes a "threshold" for pain and suffering claims. Generally, a victim can only sue for non-pecuniary damages (pain and suffering) if they have sustained a permanent and serious impairment. This helps prevent lawsuits for minor injuries, but it does not stop claims for major injuries or income loss.