Accident Benefits
Can’t Work After a Motor Vehicle Accident? Income Replacement Benefits can help.
3 minute read
The days after a motor vehicle accident can feel overwhelming. If you’re used to a daily routine — getting up for work, running errands and meeting friends — a sudden injury can leave you sidelined and unsure of what comes next. But recovery doesn’t have to come with financial stress. That’s where Income Replacement Benefits in your auto insurance policy come into play.
This coverage helps replace part of your income if you can’t work because of accident-related injuries. It provides steady, reliable support so you can focus on healing. Whether you’re off work for a few weeks or facing a longer recovery, this benefit helps make sure the bills get paid while you recover.
Coverage At a Glance
Who qualifies: If you were employed, self-employed, receiving Employment Insurance (EI), or had recent work history at the time of the accident — and your injuries prevent you from performing the main duties of your job.
Benefit: 70% of gross income up to the coverage limit selected. Payments start after a seven-day waiting period.
Coverage Limits Available: You can choose a weekly limit of $400, $600, $800 or $1000 for added peace of mind.
How Coverage Works for Different Injury Levels
Ontario auto insurance classifies injuries into three categories, based on severity: minor, non-catastrophic, and catastrophic. Here’s how the Income Replacement benefit applies in each case:
Minor Injuries
If an injury keeps you off work for a couple of days, it typically won’t qualify for payment under the Income Replacement Benefit. That’s because there’s a seven-day waiting period, and short absences usually fall below the threshold.
Non-catastrophic Injuries
When recovery takes longer — for example, a shoulder injury keeps you home for three months — the benefit can provide 70% of your gross income, up to the coverage limit selected. You can choose a weekly limit of $400, $600, $800 or $1000 for added peace of mind.
Catastrophic Injuries
In life-changing situations, such as a spinal injury that leaves you permanently unable to work, the Income Replacement Benefit can continue long-term. Payments remain subject to eligibility and may be adjusted for other income sources, such as Canada Pension Plan disability benefits. Again, you can purchase optional upgrades that extend the duration and amount of these payments, allowing for lasting financial support.
Support When You Need It Most
The road to recovery can be unpredictable, but having the right coverage makes it easier to stay hopeful and focused on healing. The Income Replacement Benefit provides more than financial assistance; it offers support during life’s toughest moments. Reviewing this coverage with a Licensed Insurance Agent or Broker can confirm you have the protection that fits your lifestyle, income and plans.
Visit our other blogs here or browse the site to learn more about accident benefits including our needs assessment tool that can help you decide what coverages you might need.
This content is intended to provide general information only and is not intended to provide legal or professional advice, or to be relied on in any dispute, claim, action, demand or proceeding. CAA Insurance Company does not accept liability for any damage or injury resulting from reliance on this information.