Auto Insurance is Changing in 2016

By March 3, 2016Uncategorized

In an ongoing effort to reform auto insurance coverage for consumers, the Ontario Government is implementing important changes in 2016 that you should be aware of before you renew your auto insurance policy.   These changes are effective June 1st, will apply only to auto insurance policies issued or renewed on or after the effective date.  Existing policies will remain subject to the current limits until they are terminated or renewed.

Ontario Auto Customized

The reforms aim to make premiums more affordable and provide consumers with more choice in the insurance coverage you can select.   Specifically, the revisions include, but are not limited to, the following:

  • Including attendant care benefits in standard accident benefits while increasing the standard benefit for accident benefits from $50,000 to $65,000.  Currently, attendant care is separated at $36,000;  Consumers will have the option to increase the combined non-catastrophic benefit to $130,000. in total;
  • Combining the attendant care and medical & rehabilitation for catastrophic injuries to $1 million in total,  with the option to increase to $2 million;
  • The option to purchase coverage that combines the Medical, Rehabilitation and Attendant Care, for ALL injuries to limits for non-catastrophic of  $1Million and the combined catastrophic benefit total to $2Million;
  • Reducing the standard duration for med and rehab benefits from 10 years to 5 years;
  • Eliminating the six-month waiting period for non-earner benefits while limiting your duration to two years from the accident;
  • Requiring goods and services not explicitly listed in the SABS to be “essential” and agreed on by the insurer;
  • Updating the catastrophic benefit definition to be “consistent with more up-to-date medical information and knowledge”

Some other important changes are as follows:

  • Changing the standard deductible for Comprehensive coverage from $300. to $500.
  • Lowering the interest rate for monthly payment plans from 3% to 1.3%
  • Insurers can no longer use a minor at-fault accident, meeting certain criteria, to increase your premiums

For general information about changes to auto insurance in Ontario, you can contact the Financial Services Commission of Ontario or call us and speak with a licensed insurance broker at Beyond Insurance.