New Ontario Automobile Insurance Reforms

Effective June 1, 2016, new automobile insurance reforms will be introduced by the Ontario government. With this reform, come several major changes. Mainly, the standard Accident Benefit coverages. You should be aware of the most significant changes to your auto insurance. Benefits and coverages are changing, some have been reduced and other options for increased coverage have been eliminated or changed.The Financial Services Commission of Ontario (FSCO) has provided a useful resource to help understand this reform: FSCO reforms

What Are The Changes:

reform table

As shown in the table, the most important things to note are that benefits will be combined. Non-Catastrophic injury benefits will be combined for a total of $65,000 limit whereas Catastrophic Injury coverage will be combined for a total of $1,000,000 limit with options to increase limits.

Some Important Things To Remember:

If you have previously chosen to purchase these optional benefits, check your policy, they may have changed to reflect amounts available in the new options. Advise your insurance broker if you wish to purchase any of these New Options.

Medical, Rehabilitation and Attendant Care benefits for minor injuries are fixed at a maximum limit of $3,500. If you purchase both the additional Medical, Rehabilitation and Attendant Care coverages, the total eligible benefit amount would be $3,000,000.

Why The Reform?

This reform is in response to the large number of minor injury claims paid out by insurers. Many of such are perpetrated by individuals in the “car accident business”. Fraudulent claims are very expensive to investigate and solve. As with many valid minor injury claims, highly inflated legal costs are paid as a result of personal injury lawyers. Combined with Ontario being the only province which provides Catastrophic injury benefits coverage and a 10 year maximum medical and rehabilitation benefit program, you can see why insurance premiums are on the rise. It is simply unfair to Ontario drivers who don’t make claims to pay higher premiums due to other drivers taking advantage of the system. This reform attempts to stabilize the industry to still provide Catastrophic injury coverage while lowering the premium for all of Ontario drivers.

If you have any questions or concerns please do not hesitate to contact one of Pacific Insurance Brokers Inc.’s qualified insurance professionals. For more information please check out the following resource’s created by us:

Enquires, contact Pacific Insurance Brokers Inc:

Head office: (416) 494-1268                               Mississauga:(905)565-5565               Email: Info@pacins.ca                 or                     mississauga@pacins.ca

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