Q) Who will pay for my auto repair if I don’t have collision coverage and I am involved in an accident that was not my fault?
A) Who pays depends on how automobile insurance claims are settled in your province. If your province uses a tort settlement system, your claim will be paid by the insurance company of the other person involved in the accident. Provinces using such a system include Alberta.* By contrast, if you live in Ontario or another province that uses a "no fault" system and you’re deemed “not at fault” in the accident, your claim will be paid by your own insurance company under the Direct Compensation portion coverage of your insurance policy. This coverage is included in the mandatory liability section of your policy.
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* Correction: Statement previously included Atlantic Provinces. This was incorrect as it does not apply to ALL Atlantic Provinces.