Driving from NL to NS: Minor Injury Cap Explained

3 minutes can save you hundreds. Enter your postal code below and join thousands of Canadians saving on insurance.

Secure. No Spam. No Fees.

Why You Can Trust MyChoice

MyChoice serves as an independent intermediary between you, financial institutions and licensed professionals without any additional charge to our users. In the interest of transparency, we disclose that we partner with some of the providers we write about – we also list many financial services without any financial gain. MyChoice does not operate a financial institution or brokerage and to ensure accuracy, our content is reviewed by licensed professionals. Our unique position means that we hold no recurring stake in your policy, ensuring our mission to help Canadians make better financial decisions is free of bias or discrimination. 

Article Contents
Picture of By <span>Aren Mirzaian</span>
By Aren Mirzaian

Updated on January 3, 2025

Visit author page
Picture of By <span>Aren Mirzaian</span>
By Aren Mirzaian

Updated January 3, 2025

Visit author page

3 minute read

Article Contents

With the sheer volume of cross-provincial travel every year, the intersection of auto liability and provincial caps has become increasingly relevant for Canadian drivers. If you reside in one province and have an auto insurance policy there, then get into an accident in another province, which provincial cap applies to your car accident claim?

Auto Liability and Provincial Caps at a Glance

  • The Court of Appeal of Newfoundland and Labrador upheld Nova Scotia’s minor injury cap in Hillyer v Tilley, which limits compensation for pain and suffering to $10,000 as of 2023.
  • The Hillyer case confirms that provincial caps on damages for minor injuries apply even when the injured parties are not residents of that province.
  • Note that a minor injury cap is a limit on compensation for pain and suffering related to minor injuries. A driver can still claim higher compensation based on other circumstances like serious impairments and claims for pecuniary damages, a.k.a. damages that can be financially quantified.

Why was the minor injury cap of Nova Scotia applied when the driver was from Newfoundland? Learn more about the legal reasoning behind the Hillyer ruling, how this affects a cross-provincial claim in case of an accident, and what to consider for your auto insurance coverage if you frequently cross provincial borders.

Why Nova Scotia’s Minor Injury Cap Applies in Newfoundland Cases

In Hillyer v Tilley, the Court of Appeal of Newfoundland and Labrador ruled that Nova Scotia’s minor injury cap is a matter of substantive law rather than procedural law. This is a key distinction because it determines which laws apply to claims arising from accidents that occur in one province, but involve residents from another province.

The plaintiffs argued in this case that they shouldn’t be subject to the cap in Nova Scotia because they were residents of Newfoundland and Labrador, where no such cap exists. However, the court found that Nova Scotia’s cap was actually essential in determining non-pecuniary damages (a.k.a. damages in tort claims), which makes it substantive law.

This decision underscores a crucial legal principle: when an accident occurs in one province, the laws governing damages from that accident should apply uniformly, regardless of where the plaintiffs reside. As a result, Newfoundland drivers involved in car accidents in Nova Scotia may find their compensation limited by this cap.

Understanding Substantive vs. Procedural Law in Auto Insurance Claims

The distinction between substantive and procedural law is key in deciding cross-provincial legal matters – in this case, cross-provincial auto insurance claims. Here’s a quick breakdown of how the two differ:

This refers to laws that define rights and duties. In the context of auto insurance, substantive laws determine how much compensation a plaintiff can receive for injuries sustained in an accident. For example, Nova Scotia’s minor injury cap is substantive law because it applies the law to established facts to calculate damages for “minor injuries”  and the extent of an injured person’s right.

This refers to laws that dictate how disputes are settled, including how courts operate and processes for filing claims. Procedural rules do not affect the rights themselves but rather how those rights are enforced within a legal system.

Think of substantive law as the “what” that is enforced, while procedural law is the “how” that is enforced. In Hillyer, the court clarified that determining damages isn’t just a procedural issue, but it has substantive considerations such as what makes an injury “minor” under the provincial law.  This distinction is crucial for drivers involved in accidents across provinces, as it dictates which province’s laws will apply to their claims.

Understanding Substantive vs. Procedural Law in Auto Insurance Claims

Implications for Drivers Traveling Between Provinces

The application of Nova Scotia’s minor injury cap means that drivers could face limitations on their compensation if they’re injured in an accident while travelling through or visiting another province. Depending on provincial caps, a driver from one province may have their injury claim capped at a lower amount despite being able to claim higher compensation under the law of the province they live in.

So for example, if a a driver from Newfoundland is involved in an accident in Nova Scotia and sustains what is classified as a minor injury, their claim could be capped at approximately $10,000 (the Nova Scotian cap) despite Newfoundland law having a higher cap.

Drivers should review their auto insurance policies to understand how coverage applies when travelling out of their home province. Some policies may not fully account for interprovincial differences in liability caps or coverage limits.

What This Means for Your Auto Insurance Coverage

Review your auto insurance policy to understand how interprovincial accidents might be handled and whether your coverage is adequate in light of differing provincial laws. Here’s what you can do:

Consider additional coverage:

Depending on your travel habits, you may want to get additional coverage for more protection in case of claims limits imposed by other provinces’ laws.

Check your policy’s conditions on cross-provincial travel:

Take a closer look at your policy’s coverage for inter-provincial accidents. Some auto insurance policies may have specific clauses addressing coverage limits when travelling outside your home province.

Review claims processes in areas you frequently travel:

Understand how to file a claim in a province you frequent, just in case you get involved in an accident out of your home province. Knowing what documentation you need and what steps to take can speed up your claim process.

Stay informed about provincial laws:

Familiarize yourself with the auto liability laws in provinces you frequently visit. Understanding how these laws differ can help you make informed decisions about your insurance needs.

Key Advice from MyChoice

  • Always verify how your insurance policy addresses out-of-province accidents and whether it aligns with your typical travel patterns.
  • Be proactive about understanding the implications of provincial caps on damages if you travel frequently between regions.
  • One thing to remember about what to do after a car accident is how different provinces handle accident reporting, which can be critical. For instance, some provinces may require specific documentation or forms to be filled out immediately after an accident occurs, while others may have different protocols.

Congratulations! You made it to the end!

Now, here is the easy part: complete your quote in under 2 minutes

Discover More About

Can your car insurance premiums drop after a year of no claims? Learn what factors influence these discounts and how to lower your auto insurance rates.
Choosing between premium and regular gasoline can dictate how well your engine runs. Learn the differences between these gasoline options.
Driving during winter is a challenge that Canadian drivers face every year. Learn why you must be careful and how to drive safely during that time.

Even More Ways To Save