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“No-fault insurance” is perhaps the most misunderstood term in Ontario. Many drivers believe it means that if they get into an accident, it doesn’t matter who caused it—everyone just fixes their own car and moves on.
This is false. “No-fault” simply means you deal with your own insurance company for your claim, regardless of who caused the crash. But make no mistake: someone is always to blame.
That blame is assigned using a strict, standardized playbook known as Ontario Regulation 668: The Fault Determination Rules.
The “Playbook” Insurers Use
Regulation 668 contains diagrams and descriptions of more than 40 common accident scenarios. When you report a collision, your adjuster doesn’t necessarily care about your story or how slippery the road was. They look at the position of the cars, compare it to the diagrams in the Regulation, and assign fault: 0%, 25%, 50%, 75%, or 100%.
Crucially, these rules ignore weather and road conditions. If you slide on black ice and rear-end someone, you are 100% at fault. The Regulation assumes you should have been driving according to the conditions.
The Financial Sting: Who Pays the Deductible?
The biggest immediate impact of Regulation 668 is on your wallet.
- If you are 0% at fault: Your claim is covered under the Direct Compensation Property Damage (DCPD) section of your policy. In Ontario, this typically means you do not pay a deductible. Your insurer covers the repairs fully.
- If you are At Fault (50% – 100%): You must claim under your optional Collision coverage. You will be required to pay your deductible (often $500 or $1,000) before repairs begin. Furthermore, your premiums will likely increase upon renewal.
The “50/50” Parking Lot Myth
A common belief is that all accidents in parking lots are automatically split 50/50. Regulation 668 actually has very specific rules for parking lots (Section 16).
- The Thoroughfare Rule: If you are driving in a main “thoroughfare” (a lane that exits the lot or connects directly to a road) and someone hits you while pulling out of a “feeder lane” (the aisles between parking spots), they are 100% at fault.
- Leaving a Spot: If you are backing out of a parking spot and hit a passing car, you are 100% at fault.
The 50/50 split usually only applies when two drivers are both backing out of spots simultaneously or both vying for the same lane and collide.
The Left Turn Trap
Regulation 668 is notoriously harsh on drivers making left turns. If you are turning left at an intersection and collide with an oncoming vehicle going straight, you are almost always 100% at fault.
Even if you argue the other driver was speeding or ran a yellow light, the Fault Determination Rules generally place the burden on the turning driver to ensure the way is clear. Unless you have independent witnesses or dashcam footage to prove the other driver ran a blatant red, you will likely be on the hook for your deductible.
Summary of Common Scenarios
Here is a quick reference guide to how Regulation 668 typically assigns blame:
| Accident Scenario | Your Action | Other Driver | Your Fault % | Do You Pay Deductible? |
| Rear-End | You hit car in front | Stopped/Moving | 100% | Yes |
| Rear-Ended | You are hit from behind | Stopped/Moving | 0% | No |
| Left Turn | Turning left | Going straight | 100% | Yes |
| Lane Change | Changing lanes | Going straight | 100% | Yes |
| Parking Lot | Driving in main lane | Exiting feeder lane | 0% | No |
| Open Door | Door opens into traffic | Driving by | 100% | Yes |
Why This Matters
Understanding Regulation 668 is vital because it removes the emotion from the equation. Insurers effectively use a flowchart to decide your financial liability.
“Many clients come to us shocked that they were found at fault because the roads were icy or the other driver ‘came out of nowhere.’ The harsh reality is that the Fault Determination Rules are rigid. They don’t care about the weather; they care about who had the right of way. Knowing these rules before you get behind the wheel is the best defense.” Jeremy Diamond, Senior Partner at Diamond & Diamond Lawyers.
If you are involved in an accident, document the scene thoroughly. The difference between being 0% at fault (no deductible) and 50% at fault (paying your deductible + rate hike) often comes down to proving exactly which diagram in Regulation 668 applies to your crash.
About Jeremy Diamond
Jeremy Diamond is a lawyer and member of both Ontario and Florida Bars. Jeremy practices in the area of Plaintiff personal injury litigation. Click here to learn more about Jeremy Diamond.
