Understanding the Changes to Ontario Car Insurance
This summer, the government is implemented some changes to Ontario car insurance. The changes will go into effect on the June 1, 2016 and it’s important to know about these changes in advance. Our quick guide is designed to give you the hard facts that you need.
First off, you should know that your standard auto insurance policy, which comes from your chosen insurance company, will automatically have newer, lower benefits. These adjustments may work with your situation or they may not.
Understanding which new limits are in place and then evaluating you and other drivers of your car will be vital. An insurance broker should be able to look over your policy and then talk to you about whether or not more coverage is necessary.
Important Changes to Be Aware Of
Current: Maximum for medical and rehabilitation for non-catastrophic injuries is $50,000 and the current maximum for attendant care for non-catastrophic injuries is $36,000.
Change: When the new changes go into effect, benefits of this type will be bundled together and the total maximum will be $65,000. If you wish to, you may boost this benefit to 130k.
Current: Medical and rehabilitation for catastrophic injuries currently has a maximum of $1,000,000 and attendant care for the same types of injuries has the same maximum.
Change: The new changes mean that the maximum for both types of injuries is now $1,000,000 total. However, you’ll have the option of boosting coverage to $2,000,000.
As you can see, these changes, which just scratch the surface, definitely impact coverage levels. If you don’t feel comfortable with the new maximums, you’ll greatly benefit from pumping up coverage where permitted.
Additionally, all drivers in Ontario must now carry third-party liability coverage, uninsured automobile coverage, direct compensation for property damage, and statutory accident benefits on their vehicles.
Other aspects of accident benefits coverage, such as caregiver benefits, dependant care benefits, and tort deductibles remain unchanged.
What You Need to Do
FSCO (Financial Services Commission of Ontario) has the following recommendations on how to make the most of the auto insurance changes:
Read the “Important Changes to Your Policy” document included in your renewal packages Compare the old and new policies to see the changes. Talk to your insurance agent to understand your policy. Don’t be afraid to shop around and find the best price, coverage, and service. You can work with an insurance broker who will work on your behalf to find the best option.
How to Get Help
Your insurance broker will have the inside scoop on all of the new changes and he or she will be able to give you expert and impartial advice. As well, you may check official Government of Ontario website in order to get more information about changes. Lastly, your current auto insurance company should be able to offer practical advice about how to upgrade your coverage if you deem it appropriate.
Hopefully, our quick guide has given you a sense of what’s happening and how to roll with the changes. Boosting your coverage is probably the best way to continue feeling safe and protected on the road.