In 2015 the Ontario Government outlined changes in the provincial budget to not only improve auto insurance, but to also make it more affordable; Ontario premiums are currently among the highest in the country.
Drivers were able to take advantage of the first of these efforts earlier this year, when the mandatory discount for winter tires was instated. As of January 1, 2016, all insurers are required to offer a discount to drivers who install appropriate winter tires during the recommended time frame. If you missed this, you can find more information about how it works in my post about it here.
That was just the beginning, effective June 1 of this year there are a few more changes that affect Ontario drivers. Here is what you need to know.
In the event of an auto accident, the benefits payable have changed. Some standard benefits have been reduced or made optional to make premiums more affordable and give customers the flexibility to customize their policies to suit their needs and budgets.
The medical, rehabilitation and attendant care benefits are some of the more significant changes however; there are a few others that are worthy of noting.
- Minor at-fault accidents can no longer be used for underwriting or rating purposes. This translates to fewer increases in premiums.
- The waiting period to apply for non-earner benefits has been reduced significantly, from six months to four weeks.
- Reduced maximum interest rate for monthly premium fees. This maximum has been reduced from 3% to 1.3% for one-year policies.
- Increased standard deductible for comprehensive coverage from $300 to $500.
What do I need to do?
You need to make sure you understand your policy and the coverage it offers. Sounds simple enough, but let’s be honest, insurance can be complicated and the options overwhelming. Talk to your advisor and make sure you have the coverage that works for you and your loved ones. Recovering from an accident is the wrong to time find out you don’t have adequate protection.
These changes will come into effect upon renewal; so if your policy is coming due, don’t wait to make the call.
Need more information? Check out some of our sources and resources:
Have More Questions?
Let me know and I’ll do my best to address it here for you and all of our readers. Better yet, contact an InsureMy advisor; these guys know their stuff. Email Info@InsureMy.ca or give them a call locally at (403) 410-1896 or toll free at 1-844-410-1896.
Everyday Insurance With Allie
Working mom, lover of the great outdoors and self-professed know-it-all. Our resident blogger, Allie isn’t the insurance guru she claims to be – but she’s learning and we are happy to help guide her. All the while keeping you in the loop on the “insurancey” stuff you need to know. #AskAllie