Should You Sue After a Car Accident? Here's What You Need to Know

Being involved in a car accident is a traumatic experience—and deciding whether to pursue legal action can add another layer of stress. You may be asking yourself: 

• Should I speak to a lawyer right away? 

• Do I even have a case? 

• Are my injuries serious enough to sue? 

These are valid questions, and before you proceed with a legal claim in Ontario, there are two major legal barriers you need to understand: the Threshold and the Statutory Deductible. 

1. Understanding the Statutory Threshold 

Under the Insurance Act of Ontario, not all injuries automatically qualify for compensation in court. To successfully claim general damages (commonly referred to as pain and suffering), your injuries must meet the “threshold” requirement. 

This threshold is high. Section 267.5(5) of the Act states that your injuries must involve “permanent serious disfigurement” or “permanent serious impairment of an important physical, mental, or psychological function.” 

Current Threshold (2025): $155,965.54 
his is the minimum a court can award in general damages if your injuries meet the criteria. 

2. The Statutory Deductible 

Even if your injuries qualify under the threshold, you may still lose a portion of your award due to the statutory deductible—another hurdle for plaintiffs in motor vehicle cases. 

Current Deductible (2025): $46,790.05 
This amount is subtracted from any general damages award below $155,965.54. 

For example, if you're awarded $100,000 in general damages, your actual compensation would be reduced by the deductible, leaving you with $53,209.95. 

Why These Hurdles Matter 

These laws are designed to limit small or minor injury claims, and they make it more difficult to pursue compensation unless your injuries are truly serious. That’s why it’s critical to: 

• Have strong medical documentation 

• Obtain expert medical opinions 

• Work with a lawyer who can assess your case realistically 

Note: Both the threshold and deductible are indexed to inflation and increase annually. 

3. Don’t Forget the Limitation Period 

Even if your injuries meet the legal test, you must act within the limitation period. In most cases, you have two years from the date of the accident to file a claim. 

Exceptions include: 

• Minors (limitation starts when they turn 18) 

• Individuals who are mentally incapacitated (e.g., in a coma) 

• Waiting too long may bar you from taking any legal action. 

So, Should You Sue? 

If your injuries are minor and you expect to recover fully within a few months, pursuing a lawsuit may not be in your best interest—especially given the deductible and threshold challenges. 

However, if you are dealing with long-term impairment, disfigurement, or significant psychological trauma, it may be worth pursuing a claim to secure compensation for your suffering, loss of income, and medical care. 

When in Doubt, Speak to a Lawyer 

Every case is unique, and the only way to make an informed decision is to speak with an experienced personal injury lawyer. At Singer Kwinter, we’ve been fighting for accident victims across Ontario for over 50 years. Our legal team will assess your case with care, walk you through your options, and help you decide what’s in your best interest. 

Contact us today for a free consultation. Our team is here to support you.