The Ontario Auto Insurance Policy has changed, with some important reductions in coverage of which you should be aware. These changes impact every auto policy in Ontario on their first renewal on or after June 1st, 2016.
ACCIDENT BENEFITS
Following this change, certain benefits on your policy will now have lower limits. For our clients, we will be maintaining on renewal the closest comparable benefits available in the new structure. However, it is important that all Ontario Auto policyholders take a few minutes to review the new schedule of optional benefits/increased limits and consider the potential need for changes to your policy.
In particular, we would call to your attention the changes related to the Medical Rehabilitation and Attendant Care Benefit. Prior to June 1st, these were considered two separate benefits; one for Medical & Rehabilitation with a standard limit of $55,000 and another for Attendant Care with a standard limit of $36,000. These benefits have now been combined into one, with a single, lower standard limit of $65,000. This limit is available to pay those expenses associated with medical, rehabilitation and attendant care costs if you or your passengers suffer non-catastrophic injuries in an auto accident. We recommend you consider purchasing increased limits, with up to $1,000,000 available in the new model.
Prior to June 1st, each of the separate benefits also carried a $1,000,000 limit for catastrophic injuries. Following the merger into one benefit, there is now a single $1,000,000 limit for catastrophic injuries. We strongly recommend you consider purchasing the increased limits, raising this limit to $2,000,000.
We strongly recommend that you speak with your broker to understand these changes and to consider requesting these increased limits.
THIRD PARTY LIMITS:
With the reduction in Accident Benefits available to injured parties from their own automobile insurance policy, there is a growing reality that the injured party may now more readily sue the ‘at-fault’ driver for additional funds once their own accident benefits are exhausted. We encourage you to consider the following to enhance your ability to respond to these legal actions:
- Increase the liability limits available under your Automobile Insurance policy and/or;
- Purchase a Personal Umbrella Liability policy, which expands coverage and increases limit of insurance.
Over the past several years, insurance companies have worked with the provincial government to reduce fraud and abuse of the benefits provided under the Ontario Automobile Insurance policy. As you have likely heard in the media, local organized crime and amateurs alike are fraudulently claiming over a billion dollars each year in accident benefits! The reduction in benefits has made little if any change to the Ontario Auto premiums. The Ontario government must make changes with respect to prevention, detection, enforcement and judicial enforcement in order to lower premiums and assist in the stabilizing of rates over the long term.
If you have any questions with respect to these changes, please do not hesitate to contact our office at (416) 234-9980 or at clientservices@cadeinsurance.com.
