Important Auto Insurance Changes
As of June 1st, 2016, the Ontario Government is changing the Ontario Automobile Policy. The goal of this change is to help stabilize rates. The biggest change is to the Medical Rehabilitation and Attendant Care Benefit under the Accident Benefits section of the policy. These formerly separate coverages with separate limits will now be combined into one coverage with one limit. The new standard benefit will be $65,000. Formerly it was $50,000 for Med & Rehab and $36,000 for Attendant Care benefits. Options to buy up this coverage limit are available. The duration for receiving this benefit will be 5 years. In addition to this, the standard Comprehensive coverage deductible will be amended from $300 to $500. This means that all policies with a comprehensive deductible below $500 will be increased to $500 on renewal. The other meaningful change to consumers is that after June 1st, the definition of a Minor Accident is changing. A Minor Accident cannot be used for policy rating if all of the following apply: If the damage to each automobile is paid by the at-fault driver (or on their behalf) and does not exceed $2000; There have been no payments made for damages to the automobile or property by the insurer; The accident did not result in any personal injury; No more than one minor accident has occurred in the past three years.
Insurers will be mailing notification of these changes to clients. And as always, it’s best to speak to your insurance broker about your options in order to ensure you are properly covered.
To view a copy of our Accident Benefits Coverage Checklist and Comparison Chart, click here.