How a Higher Accident Deductible Could Affect Your Personal Injury Settlement in Algoma

If you’ve been injured in a motor vehicle accident, especially around Sault Ste. Marie or the broader Algoma District, it’s vital to understand how the Statutory Accident Benefits Schedule (SABS) and Ontario’s Insurance Act can influence your settlement. One of the most significant components you need to be aware of is the statutory deductible applied to non-pecuniary damages, commonly known as pain and suffering.

What Is a Statutory Deductible?

In Ontario, any court award or out-of-court settlement for pain and suffering in motor vehicle accident cases is subject to a statutory deductible. This means the award is reduced by a fixed amount set annually by the Financial Services Regulatory Authority of Ontario (FSRA). If your award is below the deductible, you may receive nothing for that portion. Conversely, if your award exceeds the threshold, the deductible disappears entirely.

2025 Update from FSRA:

• Non-pecuniary damages (pain and suffering): 

  • Threshold: $155,965.54

  • Deductible: $46,790.05
    

• Family Law Act (loss of guidance, care, companionship): 

  • Threshold: $77,982.13

  • Deductible: $23,395.04

    
    

These amounts are automatically indexed, increasing annually to reflect inflation.

How the Deductible Reduces Your Settlement

If your settlement or award for pain and suffering is, for example, $100,000, the statutory deductible of $46,790.05 will be subtracted, leaving you with only $53,209.95. On the other hand, if your award is $160,000, which is above the threshold, you would receive the full amount. If it falls below $46,790.05, you could potentially receive no compensation for pain and suffering.

Case Law Spotlight: Hinds V. Metrolinx

A striking illustration of the deductible’s impact comes from Hinds v. Metrolinx 2019 ONSC 2318 (CanLII). The plaintiff was injured after an accident occurred on a GO bus. A jury awarded her $35,000 in non-pecuniary damages. However, because this fell below the deductible in place at the time, she received no compensation for pain and suffering. She was also on the hook for defendants' legal costs. This is a dramatic example of how statutory changes can “revictimize” victims.

Why Deductibles Exist and Their Implications

Ontario’s no-fault insurance scheme includes deductibles and thresholds designed to reduce the number of minor claims and control premium costs. While the goal may be to curb frivolous litigation, the result can be harsh for legitimately injured individuals, especially those with moderate injuries. Even when a jury finds in your favour, the deduction can leave you with far less than expected, or potentially nothing from that compensation for suffering at all.

Strategies to Offset a Higher Deductible

Personal injury victims in Sault Ste. Marie and the Algoma District can take several proactive steps to minimize the impact:

1. Maximize Evidence to Surpass the Threshold Work with your lawyer to build a strong medical and factual record. Objective imaging, expert testimony, and injury documentation can help ensure that pain and suffering awards exceed the threshold.

2. Claim All Eligible Benefits Beyond pain and suffering, you may also qualify for:

• income replacement benefits

• medical and rehabilitation expenses

• attendant care

• out-of-pocket costs

• loss of housekeeping services
  

These are payable regardless of non-pecuniary thresholds and help offset the financial burden. Learn more from our Motor Vehicle Accidents page on how we assist in maximizing these benefits.

3. Negotiate with Awareness of Deductibles

Skilled personal injury lawyers in Sault Ste. Marie will factor deductibles into settlement negotiations from the outset, ensuring offers reflect net values and not just gross dollar amounts.

4. Fight for Fault and Damages

Insurers often push fault or minimize injuries to keep awards low. A lawyer will challenge unfair fault allocation, advocate for full severity acknowledgment, and aim to surpass the deductible threshold during settlement discussions.

5. Consider Family Law Act Claims Carefully

If your claim includes loss of companionship or guidance, the FLA deductible still applies. However, it may be easier to exceed the lower FLA threshold ($77,982.13).

Key Numbers for 2025

Type of Damages	Threshold	Deductible
Pain & suffering	$155,965.54	$46,790.05
Family Law Act claims	$77,982.13	$23,395.04

Victims receiving total awards between these amounts may still see a net reduction due to the deductible, which underlines the importance of strategic legal advice.

Why Choose Feifel Gualazzi for Algoma District Claims

At Feifel Gualazzi, our personal injury lawyers in Sault Ste. Marie understand how statutory deductibles and thresholds affect accident victims. We specialize in ensuring clients receive the full value of their entitlements, including pain and suffering, financial and medical benefits, and compensation for out-of-pocket expenses.

From day one, we focus on building strong, threshold-crossing cases, meticulously collecting medical records, securing expert opinions, and keeping insurers accountable. We also structure settlements to optimize net compensation after deductibles.

Essential Points to Remember

A higher statutory deductible doesn’t just reduce what you recover; it changes how claims are evaluated, negotiated, and pursued. With proper legal strategy, robust evidence, and an understanding of how to navigate thresholds, residents of Sault Ste. Marie and Algoma District can still secure rightful compensation for their injuries.

Understanding how these rules apply in Ontario, and specifically to your situation, can affect whether you get nothing, something, or everything you deserve. If you’ve been injured in a vehicle accident, connecting with experienced personal injury lawyers in Sault Ste. Marie is the first step to ensure your claim accounts for every legal nuance, including deductibles.

To learn more about accident benefits and how we fight for clients in motor vehicle injury claims, contact us today.