Ontario Auto Insurance Reform 2010
Published On: October 11, 2010
What you need to know about changes to auto insurance in Ontario The Ontario government has introduced significant reforms to the auto insurance system in order to provide you, the consumer, more choice over the coverages and price you pay for insurance.  These additional accident benefit choices will allow you to customize your policy to suit your needs. The goal of these changes is to achieve rate stabilization by keeping the costs […]

What you need to know about changes to auto insurance in Ontario

The Ontario government has introduced significant reforms to the auto insurance system in order to provide you, the consumer, more choice over the coverages and price you pay for insurance

These additional accident benefit choices will allow you to customize your policy to suit your needs.

The goal of these changes is to achieve rate stabilization by keeping the costs incurred by the insurance companies in check with emphasis placed on Accident Benefits coverage.

Without these reforms, major rate increases would be required.

Standard Auto Insurance Policy

In Ontario, the Insurance Act determines the standard coverage that consumers must purchase.  As a result of the reforms, some of the features under the Standard Auto Insurance Policy have changed.  

Since September 1, 2010, if you are either buying a new auto insurance policy or renewing an existing one, you have more options to purchase a level of coverage that is right for you.

All auto insurance policies will continue to include the following:

Ø                  Third-Party Liability

Ø                  Uninsured Auto coverage

Ø                  Direct Compensation-Property Damage

Ø                  Statutory Accident Benefits

 

In addition, if you previously purchased Collision and/or Comprehensive coverage, it will still be included in your policy.

 

After September 1, 2010, when you are buying a new policy or renewing an existing one, you have the following options with respect to Statutory Accident Benefits:*

 

Ø    Direct Compensation – Property Damage Coverage – You have the option of a $500, $300 or no deductible at all on coverage to repair the auto of the driver who is not-at-fault.

What else is new?

The government’s reforms lay the foundation for an auto insurance system with greater price stability, and more protection for you, theconsumer. 

Other key changes include:

Ø     Many injuries received in an auto accident are minor.  If you have a minor injury due to an auto accident, your medical and rehabilitation accident benefits are limited to $3,500 regardless of the coverage level you have selected.

Ø     Accidents where you are 25 per cent or less at-fault will no longer affect your premium.

Ø      The deductible that is applied to court awards for fatal accidents has been eliminated. 

Ø     A new requirement that insurance companies send out benefit statements to their claimants, advising how much has been paid to date, and the additional amounts remaining for medical, rehabilitation and attendant care benefits.

Ø     If your auto has been damaged or written off after an accident and you don’t agree with the value you have been offered or your degree of fault for the accident, you can choose the appraisal process outlined in the Ontario Auto Policy to settle the dispute, and the insurer must agree to participate.

Ø    Coverage is extended to rented autos with a Gross Vehicle Weight Rating (GVWR) of more than 4,500 kilograms, if for personal use and rented for up to 7 days.

Ø      Prohibiting use of credit scores in giving quotations for your auto insurance rates.

You May Also Like

7 Strategies to Avoid Identity Theft

7 Strategies to Avoid Identity Theft

Identity theft and credit card fraud cost Canadians more than $1 million a day according to the Royal Canadian Mounted Police. That staggering statistic doesn’t mean you have to sit around and wait to be targeted. By taking…

read more
4 Smart Tips for Talking to an Auto Mechanic

4 Smart Tips for Talking to an Auto Mechanic

Unless you have a good working knowledge of how your car works, talking with an auto mechanic is an experience that can sometimes make you feel like you are at the mercy of your technician. There are a few things you can do, however, to make the interaction go more smoothly and to help you feel empowered every time you visit the auto repair shop.

read more
Child-Proofing 101 for New Parents

Child-Proofing 101 for New Parents

Bringing home a newborn from the hospital for the first time can be an exciting and sometimes intimidating experience for new parents.  In addition to caring for their new bundle of joy, new moms and dads have a responsibility to provide a home environment that is safe and nurturing once their little one becomes mobile.

read more

Ready To Upgrade Your Insurance Protection Plan?

Drop Us A Line Today

Ready To Upgrade Your Insurance Protection Plan?

Drop Us A Line Today