Auto Insurance has changed You now have more choice

On September 1, 2010, the Ontario Government implemented a major overhaul to automobile insurance in the Province. These changes provide consumers with more choice and flexibility to purchase coverage that best meets their protection needs and budgets.

You now have choices to customize your medical and rehabilitation benefits, certain deductibles and income replacement coverage. The following chart summarizes these changes.

New Auto Policy coverage – effective as of your renewal date. New options now available – If you want to increase your benefits, here are some of your new options.
• Medical & rehabilitation expenses to a limit of $50,000 for non-catastrophic injuries.
This coverage is in your expiring policy but the limit has been reduced to $50,000 in your renewal policy.
• You have the option to increase the limit to $100,000 for non-catastrophic injuries.
• Attendant care expenses to a limit of $36,000 for non-catastrophic injuries.
This coverage is in your expiring policy but the limit has been reduced to $36,000 in your renewal policy.
• You have the option to increase the limit to $72,000 for non-catastrophic injuries.
• Caregiver, Housekeeping & Home Maintenance expenses only available for catastrophic injuries.
This coverage is in your expiring policy for both catastrophic and non-catastrophic injuries. It is not in your renewal policy for non-catastrophic injuries.
• You have the option to purchase this coverage for non-catastrophic injuries
• Deductible of $30,000 when suing for pain and suffering.
This continues to be the standard deductible provided for by law.
• You have the option to reduce the deductible to $20,000

The goal of these changes is to achieve rate stabilization by keeping the costs incurred by insurers in check with emphasis placed on Accident Benefits coverage. Without these reforms, major rate increases would be required.

 

What should you do?

If you are buying a new policy after September 1, 2010, you will receive the new Standard Auto Insurance Policy and have the option to increase your benefits as described to the left.

If your vehicle is already insured, you don’t have to do anything until your next policy renewal date.

When your policy comes due for renewal, the new Standard Auto Insurance Policy will apply.

In the meantime, your insurance company will automatically include the following limits/coverages:

  • $100,000 limit for non-catastrophic injuries and $1,000,000 limit for catastrophic injuries for Medical and Rehabilitation expenses
  • $72,000 limit for non-catastrophic injuries and $1,000,000 limit for catastrophic injuries for Attendant Care expenses
  • Housekeeping and Home Maintenance Expenses up to $100 per week for all injuries
  • Caregiver Expenses up to $250 per week for your first dependant plus $50 per week for each additional dependant for all injuries

If you prefer to move to the new Standard Auto Insurance Policy before your next renewal date, contact us. We’ll explain your options and help you make an informed choice.

Contact Us if you have any questions or click here for a pdf of this page.