Who pays your medical expenses following an automobile collision?

Provincial health insurance plans, private plans and auto insurers are all responsible for some of your expenses. In Canada, auto insurers cover most medical expenses (other than for acute care).

Your provincial health insurance plan is the first responder in an auto collision. It covers acute care typically performed in hospitals – for example, setting a broken bone. In several provinces (i.e., Ontario), auto insurers also contribute to these costs through a tax called a health levy.

In 2010, Canadian car insurers paid out $274 million in health levies of which $142.3 million (51.93%) came from Ontario.

Car insurers reimburse the provincial governments for the medical services they provide to the collision victims up front. The provincial health levy is assessed by the governments based on the estimated costs for their medical services and paid by car insurers.