The first provincial budget of the new Ontario government was unveiled last month. Among the spending announcements include a number of changes to auto insurance.
Here is a brief outline of some of those changes in the budget:
● The default benefit limit for catastrophic injuries has been increased back to $2 million; the previous government lowered it to $1 million in 2016.
● A “Driver Care Card” streamlining a policyholder’s information to ‘make the claims process easier for people to navigate’.
● An online claims process and new rules on unfair practices to enhance fraud prevention in auto insurance.
● Allowing insurance companies to check an applicant’s credit history when applying for insurance as a way to lower premiums.
● Agreeing to use certain auto repair providers or health care services as another way to lower premiums.
The use of credit history has mainly been associated with rating premiums for home insurance. Typically, factors such as one’s age, driving history and postal code have been used to calculate a client’s auto insurance premiums; the latter factor has been the most contentious especially in cities such as Brampton.
But according to Lowest Rates.ca, insurance companies have long maintained that there is a strong correlation between credit scores and increased risk. On the other side, critics argue that using credit history unfairly punishes newcomers, the poor and the disabled.
If you have any questions regarding these changes to auto insurance, feel free to contact one of our experienced representatives who can help you. Call (416)494-1268 or email email@example.com.