Ontario has increased the threshold of loss needed to report a collision from $2,000 to $5,000 due the increasing cost of repairs. 

The Ministry of Transportation implemented the changes to the Highway Traffic Act Jan. 1 to help reduce the administrative burden on drivers, commercial vehicle operators, and police services, according to a release from the Ontario Office of the Premier. 

Guelph Today reported a spokesperson with Accident Services International (ASSI) said the increase reflects the rising costs in vehicle repairs from inflation and advanced automotive technology, which costs more to replace. 

Staff Sgt. Scott Griffiths of the Waterloo Regional Police Service told CTV News that the majority of collisions his department responds to already meet the $5,000 threshold. 

“There’s oftentimes a little bit of confusion about, ‘How do I know if the damage amount is significant enough?’” Griffith told the news outlet. “In most cases, unfortunately, as we’ve seen from costs everywhere else in the world these days, repair costs have gone up. The chances are, you will likely have to report that collision.” 

CCC’s Top 2024 Trends Report says vehicle repair trends in the U.S. in 2024 show the average total cost of repair through Q3 2024 was $4,667, a 3.7% increase from the same time last year. The average cost of repair of $4,667 converts to about $6,733 in Canadian dollars. 

The cost of vehicle maintenance and repairs has increased by 28% over the past three years, according to a Wall Street Journal (WSJ) article. 

“Getting into a fender bender can be a mind bender these days,” the article says. “That little dent, bump, or scrape seems pretty minor until you’re hit with the real damage: the bill.”

A Bankrate article says advanced driver assistance systems (ADAS), which rely on sensors, cameras, and radar, can reduce the risk of a crash by as much as 50%. However, the systems also will increase claims. 

Tony Cotto, director of auto and underwriting policy at the National Association of Mutual Insurance Companies (NAMIC), told Bankrate that the cameras and sensors ADAS rely on are located outside the vehicle and are more likely to be damaged in the event of a crash. 

“You can’t just replace the camera,” Cotto told Bankrate. “You have to calibrate it. In order to calibrate it correctly, the mechanic has to spend additional time on that repair and the calibration, and they may need additional equipment, which shops have to invest in.”

While calibrations increase the cost of a repair, an improper calibration could cause an ADAS feature to malfunction, leading to a higher risk of a future crash, Cotto said. 

“The cost to repair and replace components is up; the cost to insure them is going to follow,” Cotto said in the article.

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