Ontario: June 1/16 Auto Insurance Benefits Decrease

Update: see previous post – February 5, 2013 Ontario: Time to Reduce Auto-Insurance Premiums for All Ontario Drivers

Toronto Police won't be attending most collisions in the future.
The Ontario government is mandating changes to standard auto insurance policies that will reduce the coverage limits for medical, rehabilitation and attendant care for people injured in car crashes. photo by fightyourtickets.ca

see source

Coverage limits for medical, rehabilitation and attendant care will be reduced starting June 1

If you get injured in a car accident in Ontario after June 1, the amount of medical costs that your insurance company will cover may be a lot lower than before.

The provincial government is mandating changes to the standard auto insurance policies that will drive down the limits on medical, rehabilitation and attendant care coverage.

“Starting June 1, 2016, to help make insurance premiums more affordable, the benefits and coverages you receive in a standard auto insurance policy are changing,” says the provincial insurance regulator, the Financial Services Commission of Ontario (FSCO) on its website.

http://saintpatricksdayimages.com/wp-content/uploads/2016/03/St.-Patricks-Day-Pot-of-Gold-2.png
There is a reason that the insurance industry gives money to the Liberal party – it works! The lobby group for insurance companies split its donations primarily between the Liberals ($152,325) and the PCs ($143,035). While Kathleen Wynn was running as the leader of the Liberal party (and as a result, Premier) the Insurance Bureau of Canada provided her with a $25,000 contribution. Given all of the changes to auto insurance (higher costs for drivers, less pay-outs for insurance companies) in Ontario, the Liberals are rewarding insurance companies for their continued financial support.

Insurance companies are now informing policy holders of the upcoming changes through the mail

For most injuries, the combined limit of $86,000 for medical, rehabilitation and attendant care is dropping to $65,000. For injuries defined as “catastrophic,” the $2 million combined limit for medical, rehabilitation and attendant care is dropping to $1 million.

For new policies purchased after June 1, the coverage changes will kick in right away. For existing policies, the new limits will apply once the policy renews following June 1.

Drivers can purchase additional coverage for higher premiums.

Other measures that take effect June 1 include:

  • Insurers can no longer use a minor at-fault accident as a reason to increase a driver’s premiums.
  • The standard deductible for comprehensive coverage increases to $500 (from $300).
  • The maximum interest rate that insurers can charge for making monthly payments on a one-year policy drops to 1.3% (from 3%).
It's only fair to share...
Share on FacebookTweet about this on TwitterGoogle+Pin on Pinterestshare on TumblrShare on LinkedInShare on RedditEmail to someone

One thoughtful comment

  1. Hello! I just would like to give a huge thumbs up for the great information you’ve here on this post. I will be coming back to your site for more soon.

Leave a Reply

Your email address will not be published.