A significant share of Canadian drivers may be breaking the law and exposing themselves and their insurers to hidden risk simply because they do not understand what they must do after a crash.
A recent national poll of 1,000 people commissioned by CBC’s Cost of Living found that among respondents who had a collision in the past five years, 43% chose to pay for repairs out of pocket rather than put a claim through their insurer. Of those, 57% said they did so to avoid a premium increase.
For brokers, the numbers raise a direct question: do your clients actually know that they must report an accident to their insurer, even if they never file a claim?
Under provincial insurance laws and standard auto policies, drivers are required to report collisions to their insurer, regardless of whether they intend to make a claim or settle privately.
That obligation is clearly not well understood. Rob de Pruis, national director of consumer and industry relations at the Insurance Bureau of Canada, told CBC that “most people do not understand” that reporting is a legal responsibility.
If a driver underreports accidents, the insurer is pricing the risk on incomplete information. That affects both the individual’s rating and the wider risk pool. It also creates coverage and legal exposure for the policyholder if an injury or dispute surfaces later.
Failing to tell an insurer about a crash is not just a minor omission; in many cases, it is material misrepresentation.
Erik Knutsen, a lawyer and insurance law professor at Queen’s University in Kingston, Ont., told CBC that keeping quiet about an accident breaches the insurance contract. At renewal, not disclosing a prior collision when asked for a full loss history can amount to fraud – knowingly providing false information the insurer relies on to price and underwrite the risk.
Criminal charges are unlikely, he said, but the policy can be voided. If a bodily injury claim emerges months later from that “minor” fender‑bender, the insurer may have no obligation to defend or indemnify. The driver could then face a personal injury lawsuit without coverage.
For brokers, that scenario also creates potential E&O exposure if a client argues they were never clearly told what had to be reported.
Accident reporting rules differ by province and territory. Ontario, for example, generally requires drivers to report to their insurer within seven days or as soon as reasonably possible, while Alberta uses “as soon as practicable” language.
In all provinces, however, standard auto policies require prompt notice of an accident and full disclosure of prior losses when applying or renewing. The instinct to “keep it off the record” to protect a rating runs directly against those obligations.
That tension is being magnified by rising auto premiums. Statistics Canada data showed average auto insurance premiums climbed roughly 36% between 2014 and 2024, with only a temporary dip during the pandemic. It is not surprising that some drivers are looking for ways to avoid any further increase.
Client communication is increasingly a form of risk management. Annual reviews, welcome calls and renewal emails can clearly set out that all collisions must be reported, even where no claim is made and repairs are paid out of pocket. Documenting those conversations and tightening renewal questionnaires around “claims, accidents, or losses” can help reduce disputes later.
Brokers can also explain the trade‑off to clients determined to protect their record. Where available, features such as accident forgiveness can make it easier for drivers to follow the rules.
The poll suggests many Canadians are making unilateral decisions about what to tell their insurer after a crash. Ensuring clients understand even the basics of accident reporting could prevent coverage gaps and limit the chance that a parking lot scrape turns into a serious problem at renewal or at claims time.
