FSRA Publishes 2025 Automobile Insurance Indexation Amounts

The Financial Services Regulatory Authority of Ontario (FSRA) recently released its 2025 Automobile Insurance Indexation Amounts, effective January 1, 2025. This Guidance establishes indexed amounts related to insurance claims, based on the Canadian Consumer Price Index (CPI), which fluctuates annually.

The FSRA Guidance significantly impacts the statutory threshold and deductible for “non-pecuniary” tort awards arising from automobile use or operation. These awards—commonly referred to as “general damages”—compensate collision victims for pain and suffering, loss of amenities, and loss of enjoyment of life. Similarly, claims by family members for loss of care, companionship, and guidance under the Family Law Act (FLA) are subject to a corresponding threshold and deductible.

Understanding the Threshold and Deductible

Statutory thresholds were designed to control the rising costs of personal injury litigation but often act as a barrier to serious injury claims, benefiting insurance companies. Many plaintiffs are unaware that if a jury awards damages below the statutory threshold, those damages are automatically reduced by the applicable deductible. This means a claimant could receive no compensation for pain and suffering—or lose a significant portion of their damages—even when they succeed on the merits of their case.

For 2025, the CPI increase is 1.6%. Accordingly:

• The general damages threshold increases to $155,509.39.
• The Family Law Act (FLA) damages threshold increases to $77,982.13.
• General damages below the threshold are subject to a deductible of $46,790.05.
• FLA damages below the threshold are subject to a deductible of $23,395.04.
• The maximum amount payable for pain and suffering is now $460,969.

How This Affects You

These changes highlight the complexities of Ontario’s auto insurance system and the challenges injured parties face in securing fair compensation.

If you or a loved one has been seriously injured in a car accident and have questions about the FSRA Guidance or your lawsuit, we are here to help. Campisi LLP offers free consultations to address your concerns and provide expert guidance.

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