If you have been injured in a car accident in Ontario, you might be surprised, even shocked, to learn that getting compensation for your pain and suffering is not automatic. Ontario's auto insurance laws impose special hurdles that can block or reduce what you receive for these non-economic damages. Even if another driver was clearly at fault, you must clear a high legal bar called the threshold test to claim pain and suffering damages. And even if you pass that test, a large statutory deductible can drastically reduce your award.
Ontario law limits who can sue for pain and suffering after a motor vehicle accident. Not every injury will qualify. The law requires that your injuries involve a serious and permanent impairment of an important bodily function or a serious and permanent disfigurement such as significant scarring. In plain terms, your injuries must be both permanent and serious, and they must affect an important physical, mental, or psychological function of your life.
This rule is designed to filter out minor or short-term injuries. A broken arm that fully heals in a few months or a temporary whiplash might not meet the test. But injuries that cause chronic pain, lasting disability, cognitive issues, serious psychological trauma, or permanent scarring can qualify because they significantly interfere with your ability to work, socialize, care for yourself, or enjoy your life.
The threshold is usually decided by a judge. Even if a jury believes your story and decides to award you damages, if the judge finds your injuries do not meet the legal threshold, that award can be wiped out. You could end up with nothing for pain and suffering despite the impact on your life. This can feel very unfair to victims who are genuinely suffering but whose injuries are deemed not serious enough under a strict legal definition.
Even if you pass the threshold test and prove your injuries are serious and permanent, Ontario law imposes a statutory deductible that automatically reduces your pain and suffering compensation. This deductible is a large amount of money subtracted from your award, directly benefiting the insurance company.
Here is how it works. The deductible applies to any award below a certain amount. In 2024, the deductible was about $46,000 and applied to any award under approximately $153,000. If you are awarded $100,000 for pain and suffering, nearly half could be taken away. If you are awarded $50,000, the deductible would reduce that to only a few thousand dollars in your pocket.
There is one exception. If your award exceeds the cutoff amount, the deductible disappears and you receive the full award. However, very few cases reach that level, which means most accident victims have their compensation reduced. To make matters worse, the deductible increases every year with inflation, so the amount taken away keeps growing over time.
On top of Ontario's rules, there is also a Canada-wide cap on damages for pain and suffering. This cap was created by the Supreme Court of Canada in 1978, which decided that there should be an upper limit for non-economic damages in personal injury cases. Adjusted for inflation, the maximum amount for pain and suffering in 2024 is about $460,000.
This cap is meant to apply only to the most catastrophic cases, such as paralysis or severe brain injury. Even in those situations, no matter how life-altering the injury, a victim cannot receive more than the capped amount for pain and suffering. While $460,000 sounds significant, it is modest when compared to what courts in other countries award for similar life-changing injuries.
These rules create a system that makes it difficult for many accident victims to be fully compensated for their suffering. The threshold blocks claims that do not meet its strict definition, the deductible reduces most awards, and the cap limits even the most catastrophic cases.
The original purpose was to discourage small claims and reduce insurance costs. In practice, the system often goes too far, discouraging people with legitimate injuries from pursuing claims or leaving them with far less than what a jury or judge believed they deserved. This benefits insurers, who save money by paying less in damages, but it leaves victims feeling that their pain has been discounted or ignored.
For someone dealing with chronic pain or psychological trauma, the outcome can be devastating. A victim may succeed in proving their case and still walk away with almost nothing after the deductible is applied. These barriers can make people feel like the justice system is stacked against them.
This is where having the right legal team makes all the difference. An experienced personal injury lawyer can help you overcome these barriers by gathering strong medical evidence, presenting expert testimony, and building a compelling case that your injuries meet the threshold.
A skilled lawyer will also understand how to navigate the deductible, pushing for settlements or awards that exceed the cutoff where possible. They can value your claim properly, ensure that the insurer does not minimize your pain, and pursue every category of compensation available to you, including income loss and future care costs.
Perhaps most importantly, a lawyer is your advocate against the insurance company. Insurers know the rules inside and out and use them to their advantage. You deserve someone equally experienced on your side, someone who knows how to fight back and maximize your compensation.
Ontario's system for pain and suffering damages in car accident cases is filled with hurdles that make it harder for victims and easier for insurers. The threshold test, the ever-rising deductible, and the national cap combine to reduce what injured people receive, even when their pain is very real.
Until reforms are made, the best way to protect yourself is to work with a lawyer who understands these rules and knows how to push for fair results. With strong advocacy, you can still pursue meaningful compensation and take steps to rebuild your life after a serious accident.
Because at the end of the day, your pain is real, your story matters, and you deserve justice -- not a system that quietly subtracts from what you are owed.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Pain and suffering claims depend on specific facts and circumstances. If you've been injured in a car accident, consult with an experienced Ontario personal injury lawyer.
We are here 24/7 to address your case. You can speak with a lawyer to request a consultation.
905-744-8888