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The Deductible for Pain and Suffering Claims

In addition to passing the Threshold, your injuries also need to surpass the $30,000 deductible for pain and suffering claims. The deductible means that the first $30,000 awarded to you in your case essentially vanishes. This deductible does not apply to any claims where the damages exceed $100,000.

So, if at trial, the Judge awards you $25,000 for your case, this will be a valueless claim after the $30,000 deductible is applied. In such a case, you may likely have to pay the insurance company's legal costs if they had a smart lawyer. In another example, if at trial the Judge awards you $35,000, after the application of the $30,000, you will only be left with a $5,000 award. After paying your lawyer's fees, disbursements, taxes etc., you aren't really left with much.

The concept of the deductible doesn't seem fair, particularly from an accident victim's perspective. The reasoning for its application was that insurance companies wanted to stop small pain and suffering claims in their tracks, before they even have a chance to get started. Insurance companies lobbied to government for changes to the Insurance Act to enact a $30,000. The government listened, and accident victims (meaning the general public) have been dealing with the ramifications ever since.

The end result is that with the application of the Threshold and the Deductible, it is very hard to recover damages for pain and suffering in a car accident case.

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