Article by Matthew Newton-Reid
and Aislyn Sax
Statutory Deductible Increases for 2026
Hurt in a car accident? The amount you are awarded could be reduced by almost $48,000 even if you aren’t at fault
If you are injured in a motor vehicle collision and receive compensation for pain and suffering (either through a settlement or trial award), you may be surprised to learn that your award can be reduced by $47,913.01. This reduction—called the statutory deductible—is required by law and increases every year with inflation.
What are pain and suffering awards?
Pain and suffering awards are also called non-economic awards or non-pecuniary awards. These are damages that are awarded to try and compensate for the physical pain, emotional distress, and enjoyment of life. These are things like pain preventing you from playing with your kids like you used to or not being able to enjoy your retirement like you always anticipated.
Often these can be the majority of damages awarded. That’s why understanding the statutory deductible and how it can drastically reduce a settlement is so important.
When the Deductible Applies
The deductible is applied to:
- Non-pecuniary damages, such as pain, suffering, and loss of enjoyment of life; and
- Family Law Act claims for loss of guidance, care, and companionship.
When the Deductible Does Not Apply
The deductible does not apply to other injuries like slip and falls or dog bite accidents, it only applies to motor vehicle accidents.
There are two key exceptions:
- The award for pain and suffering meets or exceeds the statutory monetary threshold (if your award is $159,708.71 or more the deductible does not apply); or
- A Family Law Act claim arises from a fatality.
2026 Statutory Deductible Increases, Updates, and Thresholds
As of January 1, 2026, the deductible amounts and corresponding thresholds increased by 2.4% from the 2025 amounts. Below are the updated figures:
Monetary Thresholds (as of January 1, 2026)
| Category | Amount 2025 | Amount 2026 |
| Non-Pecuniary General Damages (Pain and Suffering) | $155,965.54 | $159,708.71 |
| Family Law Act: Loss of Guidance, Care, and Companionship | $77,982.13 | $79,853.70 |
Deductible Amounts (as of January 1, 2026)
| Category | Amount 2025 | Amount 2026 |
| Non-Pecuniary General Damages (Pain and Suffering) | $46,790.05 | $47,913.01 |
|
Family Law Act: Loss of Guidance, Care, and Companionship (unless there is a fatality then there is no deductible) |
$23,395.04 | $23,956.52 |
Example: How the Deductible Affects Your Compensation
As of January 1, 2026, any pain and suffering award below $159,708.71 is reduced by the deductible of $47,913.01.
For instance:
If your pain and suffering award is $158,000, the defendant can deduct $47,913.01, leaving you with $110,086.99.
If your award is $159,708.71 or higher, the deductible does not apply, and you receive the full amount.
Why is there a deductible?
The rationale for the deductible is to prevent smaller claims from being brought through court and make people think twice before bringing motor vehicle lawsuits, which take up court time and resources.
Unfortunately, it provides a barrier to people injured in car accidents and can be especially unfair in trial as lawyers are not allowed to mention the deductible or the fact that the defendant has insurance. This can lead to juries sometimes awarding amounts that are less than the threshold, meaning the plaintiff gets the equivalent of $0.
That is why having a personal injury lawyer on your side who knows the complex rules around dealing with motor vehicle insurance is so important when you or someone you love experiences an accident. We offer free consultations with experienced personal injury lawyers at Cohen Highley. If you have any questions or want to book a consultation please contact the firm at 519-672-9330 or you can message us on our website: Contact Us – Cohen Highley LLP Lawyers