Auto Insurance Rules Change September 1, 2010 (Ontario)

Update: see previous posts – May 18, 2009 Ontario Auto Insurance – Reducing Accident Benefits from 100 to 25 Thousand Dollars., June 11, 2009 Insurance Companies exercise discrimination due to “perceived genetic risks”., July 19, 2009 Insurance Rates Skyrocket in Ontario, October 5, 2009 Ontario Liberals Support Auto Insurance Profits, November 5, 2009 Liberals Take Care of Ontario’s Auto Insurance Companies, November 13, 2009 Home Insurance Skyrockets in Ontario

McGuinty adds Insult to Injury by offering alot less insurance coverage for the same amount of Auto-Insurance Premiums for 9 million Ontarians

H.S.T, Hydro Increases, Auto Insurance Increases – Ontarians can’t get a break, as the Ontario government continues to approve increase, after increase, after increase during this recession. The Premier of Ontario, Dalton McGuinty, may look like Norman Bates (Anthony Perkins) in the movie Psycho, but he doesn’t have to act like him, by gouging one customer at a time.

On Wednesday, September 1, 2010 the Auto Insurance rules will dramatically change, providing much less coverage for consumers, who have all just recently had their auto insurance premiums increase. The McGuinty government wholly supports these changes, despite the economic hardship to consumers.

You’ll pay more for less and if you want the same coverage you had prior to September 1, 2010, you’ll have to pay alot more money and still will not be able to achieve what you previously had, prior to September 1, 2010.

Insurance Companies are complaining that they have lost monies on their profit margins over the last two years.  Insurance Companies operating out of Ontario have always used the same strategy, cry poor (while they make billions of dollars in profits) and ask the government of the day for permission to raise the insurance rates through the roof. The government either says “no” or allows these insurance companies to raise the premiums Ontarians pay for mandatory auto insurance in Ontario. Apparently, the McGuinty government can’t say “no” and keeps sending out Finance Minister Dwight Duncan to give the good news to insurance companies, much to the chagrin of the average consumer.

Queen’s University Prof. Erik Knutsen, who specializes in insurance law, said the changes will make a bad system even worse by making it far too complex.

“No regular person can sort out what their coverage is and more importantly what it means to them,” Knutsen said in an interview.

Here are the Post September 1, 2010 Changes to Mandatory Auto Insurance in Ontario:

Income Replacement Benefit

If you are involved in an accident and sustain injuries which prevent you from working, this is a benefit that you would have to draw on in order to survive:

Right now, the Income Replacement Benefit will replace 80% of your net income, up to a weekly maximum of Four Hundred ($400.00) Dollars.

Post September 1, 2010:

The Income Replacement Benefit will replace 70% of your gross income, up to a weekly maximum of Four Hundred ($400.00) Dollars. If you want additional coverage up to One Thousand ($1000.00) a week, you will have to purchase expensive additional coverage.

Medical, Rehabilitation and Attendant Care Benefits (for Non-Catastrophic Injuries)

If you have been injured, which prevents you from working, you’ll normally need medical and rehabilitation services. In some cases you will need to have “attendant care”.

Right now, coverage is provided for upto One Hundred Thousand ($100,000.00) Dollars for Medical and Rehabilitation Services. Attendant Care is provided up to a maximum of Seventy Two Thousand ($72,000.00) Dollars.

Post September 1, 2010:

You’ll only receive Fifty Thousand ($50,000.00) Dollars for Medical and Rehabilitation Services. If you want to purchase expensive additional coverage up of One Hundred Thousand ($100,000.00) Dollars to One Million, One Hundred Thousand ($1,100,000.00) Dollars (including assessment costs) you can do so. Attendant Care will only be provided up to a maximum of Thirty Six Thousand ($36,000.00) Dollars, half of the coverage available before September 1, 2010. You can purchase additional expensive coverage of $72,000.00 to $1,072,000.00 for attendance care benefits.

Medical, Rehabilitation and Attendant Care Benefits (Catastrophic Injuries)

Right now, coverage is provided for up to One Million ($1,000,000.00) Dollars for Medical and Rehabilitation Services and One Million ($1,000,000.00) Attendant Care Benefits.

Post September 1, 2010:

Medical and Rehabilitation Services will continue at One Million ($1,000,000.00) Dollars, including assessment costs. Attendant Care Benefits will continue at One Million ($1,000,000.00) Dollars. You can purchase expensive  additional coverage – One Million ($1,000,000.00) Dollars for Medical, Rehabilitation and Attendant Care Benefits including assessment costs.

Caregiver Benefit:

Right now, coverage is provided for those who are injured and the primary caregiver of dependents in the home and unable to continue to be the caregiver of dependents in need; coverage up to Two-Hundred and Fifty ($250.00) per week for the first dependant, plus $50 for each additional dependant; available for all injuries.

Post September 1, 2010:

Only available to those who sustained catastrophic injuries. The same coverage (up to Two-Hundred and Fifty ($250.00) Dollars  per week for the first dependant plus $50 for each additional dependant); You can purchase additional expensive coverage which will provide those who have not sustained catastrophic injuries (you can only purchase up to Two-Hundred and Fifty ($250.00) Dollars  per week for the first dependant plus $50 for each additional dependant).

Housekeeping & Home Maintenance Expenses

Right now this benefit is available to those who as a result of an injury can no longer perform the tasks of housekeeping or home maintenance. The current coverage is up to One Hundred ($100.00) Dollars per week, available for all injuries.

Post September 1, 2010:

This benefit will only apply to those who have sustained a catastrophic injury. You will be able to purchase expensive additional coverage of One Hundred ($100.00) Dollars a week for non-catastrophic injuries.

Death and Funeral Benefits:

Right now, the coverage that is provided is Twenty Five Thousand ($25,000.00) Lump Sum to an Eligible Spouse; Ten Thousand ($10,000.00) Dollars Lump Sum to each Dependant and a Maximum of Six Thousand ($6,000.00) in Funeral Benefits.

Post September 1, 2010:

Coverage that is provided is Twenty Five Thousand ($25,000.00) Lump Sum to an Eligible Spouse; Ten Thousand ($10,000.00) Dollars Lump Sum to each Dependant and a Maximum of Six Thousand ($6,000.00) in Funeral Benefits. You will be able to purchase expensive additional coverage: Fifty Thousand ($50,000.00) Lump Sum to an Eligible Spouse; Twenty Thousand ($20,000.00) Dollars Lump Sum to Each Dependant and a Maximum Eight Thousand ($8,000.00) in Funeral Benefits.

Dependent Care Benefit:

Right now, this is not a benefit that is available to Ontarians.

Post September 1, 2010:

You will be able to purchase this coverage. The coverage that will be provided is up to Seventy Five ($75.00) Dollars per week for the first dependant and Twenty Five ($25.00) Dollars  per week for each additional dependant to a maximum of One Hundred and Fifty ($150.00) Dollars per week.


Post September 1, 2010:

You can now tailor your deductibles:

Direct Compensation: Property Damage Coverage – You have the option of no deductible at all, a Three Hundred ($300.00) Dollar deductible, or a Five Hundred ($500.00) Dollar deductible on coverage to repair the auto of the driver who is not-at-fault.

Tort deductible: You have the opportunity to reduce the deductible associated with court awarded compensation for pain and suffering from Thirty Thousand ($30,000.00) Dollars to Twenty Thousand ($20,000.00) and for Family Law Act claims from Fifteen Thousand ($15,000.00) Dollars to Ten Thousand ($10,000.00) Dollars.

The Financial Services Commission of Ontario (FSCO) has released the following information:

Ontario Auto Insurance Reforms: Providing More Choice to Consumers

Providing More Choice to ConsumersThe Ontario government has introduced changes to the auto insurance system that are intended to provide greater price stability, and give drivers more control over the amount of coverage and price they pay for auto insurance.  As a result, some coverages under the Ontario Auto Insurance policy have been altered, and a new standard auto insurance policy will take effect on September 1, 2010.

As of September 1, 2010, drivers will be able to:

  • Choose the insurance coverage that best meets their protection needs and budgets.
  • Customize their level of income replacement, medical, rehabilitation, attendant care, caregiver, housekeeping, death benefits and home maintenance coverage; and
  • Better integrate their auto insurance with private disability insurance coverage, or individual or group health insurance coverage

To learn more about the auto insurance reforms, click on one of the links below:

Consumers Industry


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Consumer Information on Auto Insurance Reforms

What Consumers Need to KnowChanges to auto insurance in Ontario will affect all drivers in the province. As of September 1, 2010, coverage under the Standard Auto Insurance Policy will change and you will have more choice and flexibility in choosing the coverage that best meets your needs and budget. Whether you are renewing an existing auto insurance policy or purchasing a new policy, it is important to understand how these changes will affect you.

To learn more about these changes, refer to the following consumer resources:

  • Frequently Asked Questions on Auto Reforms (PDF)

All auto insurance policyholders in Ontario can expect to receive the following information from their insurance companies, brokers or agents. These publications explain changes to the standard auto insurance and new choices available to policyholders after September 1, 2010.

Update: September 1, 2010 – Liberals reduce insurance benefits for injured motorists and instead, pander to profit driven Auto Insurance Companies

Update: September 1, 2010 – Ontario Auto Insurance Reforms Hurt Consumers: Critics

Update: September 1, 2010 – Ontario Premier Dalton McGuinty defends decision to save Auto Insurance Companies money and increase their profit margin at the expense of nine (9) million driver’s in Ontario.

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  1. It would work the same as insurance for cseomtic surgery the only people who would buy it, would be the ones who want to use it, and accordingly, it would be extremely expensive. There’s no “sharing of risk” for INTENDED events. It’s just a prepayment plan, with extra built in, so the insurance company can administer the claims. Was this answer helpful?

  2. I’ve learn several good stuff here. Certainly worth bookmarking for revisiting. I wonder how a lot effort you set to make this sort of great informative website.

  3. Hey there! This is my 1st comment here so I just wanted to give a quick shout out and say I genuinely enjoy reading your posts.

  4. Hi my family member! I want to say that this post is amazing, nice written and include almost all significant infos. I’d like to peer extra posts like this .

  5. Long live capitalism – It is a pitty that helpless people of the free world – canada, are not so free to raise their voice, all they do is suffer and comply. Long live democracy and capitalism. Live of friendship of government officials and insurance ceo’s and executive branches, and also long live helplessness and freedom of poor Canadians !

  6. It’s just disgusting how Ontarians are treated by our government. Since I came to Canada in 1991 this country is going down… How can I keep being proud of being Canadian if the lobbying is legal in this country?! You can basically buy your own politician, I wonder how much did the auto insurance paid… What happened on September 1, 2010 is just a shame. There was a petition because of Rogers and Bell trying to prevent flow of electronic information (internet) by charging over 6000 times (yes it is 6000 not 6 nor 60 nor even 600) more than the actual cost of bandwidth!!!!!!! taking us back to the level of countries in the third world LITERALLY! So maybe we need to start a petition to stop this auto insurance scam.
    My friends is US are paying $30 (yes 30 not 300) per month and that includes road assistance. We’re so proud to be Canadian… I really cannot see why anymore.

  7. I was looking for this kind of review for about 1 hour.. i’m glad i found it. Great piece of work, continue it. Best Regards.

  8. Hi Cher:
    The first time I saw Dalton McGuinty, I saw Tony Perkins and to this day, everytime I see Tony I think of Dalton and vice versa.

  9. I’ve always thought Dalton looks like Tony Perkins. Glad someone agrees with me. Uncanny resemblance.

  10. Just got my insurance bill, the bill it is up a whopping 20% increase with no claims ever and I just turned 50 years of age and also lost my loyalty discounts with TD HOME AND AUTO after being with them since 1986 (24 years) with no claims or tickets what a real scam is going on here it’s no wonder fraud is going up, thanks . DALTON THE DOPE.

  11. I recently got hit with the insurance industry changes. My monthly charge went from $106/month to $166/month. That’s an increase of $720/year! I haven’t had any accidents or claims and neither has my wife. Absolutely nothing has changed. It is infuriating that my benefits have been decreased at the same time. I went to Kanetix and switched to another provider and will pay $103/month with slightly better coverage than I had before.

    Although I am happy to be paying less, I thought it was strange that my old insurer would try to gouge me so severely and then let me go without even trying to retain me as a customer.

    I wanted to look into it further, so I applied for an online quote from my old insurer. Much to my chagrin, the rate came back at $95/month, much cheaper than the $166/month they were trying to charge me as an existing customer.

    It might be a bit of a long-shot, but it appears that insurers are raising the rates for existing customers in an effort to make a profit on the back of what the government of Ontario calls “necessary” changes that “give you more choice”. That’s a crock and we all know it, but are the insurers risking their bottom line in the short-run by gouging current customers (who may terminate their contracts and go to another provider), in order to strategically gain new customers. It will be interesting to see if my rates go through the roof in a year’s time, when I renew with my new insurer. If I do, it looks like the insurance industry (and the province for that matter) knows exactly what they are doing and will benefit no matter what. In short, there’s money to be made by enticing new customers at low rates that turn out to be teaser rates anyways. This year’s rates might be a reprieve, but I’ll know for sure in a year’s time.


  12. This is a great post. Why does this liberal act like a conservative and only support businesses in this province?
    Why can’t mcguinty offer us something like public auto insurance, instead of taxing us and allowing insurance companies to make billions of dollars on the good people of Ontario. He places the HST on all of us and then allows hydro to make huge increases to the rates and at the same time, he allows insurance companies to rack in the profits while offering us less coverage for more or the same! Time to make some changes at the election polls, do you know when the next provincial election is taking place? Thanks for your great website, it helps us all.

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