The Ontario Automobile Insurance policy includes Accident Benefits coverage, which responds when you or your passengers are injured in an automobile accident. In 2016, reforms to the Accident Benefits portion of the policy were introduced by the provincial government and now affect all policies. Standard Accident Benefits are those provided by the basic policy, with optional increased or additional benefits available for purchase.

We encourage you to review the Accident Benefits provided by your policy and consider additional benefits available for purchase.

Medical, Rehabilitation and Attendant Care Benefit

Medical & Rehabilitation: Reimbursement for reasonable, necessary medical and rehab expenses not covered by OHIP.  If you have Employee Group benefits, the insurance provided by your employer responds first. Attendant Care: Reimbursement for an attendant to look after you at home or within a healthcare facility. As of June 1, 2016, payments are limited to 5 years for adults and 10 years for children (non-catastrophic).

Standard Benefits: $65,000 combined limit. Minor injuries are fixed at a maximum limit of $3,500

Optional Benefits: 

• Increase limit for serious but non-catastrophic injures to $130,000 or $1,000,000.
• Increase limit for catastrophic injuries from $1,000,000 to $2,000,000.

Caregiver Benefit

Reimbursement to hire someone to care for your dependant(s).

Standard Benefits: Up to $250/week for first dependant, $50 for each additional dependant. Available in catastrophic injuries only.

Optional Benefits: Extend this benefit to respond to non-catastrophic injuries.

Housekeeping & Home Maintenance Expenses

Reimbursement for someone to carry out your household responsibilities. Standard benefits provide coverage only in the case of a catastrophic injury.

Standard Benefits: Up to $100/week. Available in catastrophic injuries only.

Optional Benefits: Extend this benefit to respond to non-catastrophic injuries.

Income Replacement Benefit

A weekly income of 70% of your gross income up to the weekly limit, beginning one week after the accident occurs which prevents you from working. If your annual income is higher than $30,000 you should consider purchasing the increased limits.

Standard Benefits: Up to $400 per week. Non-earners are eligible for up to $185/week limited to 2 years.

Optional Benefits: Increase the weekly maximum to $600, $800, or $1,000.

Dependant Care Benefit

Not provided in the Standard Benefits, this optional coverage provides limited reimbursement for additional expenses to care for your dependant(s) if you are employed and injured in a car accident.

Standard Benefits: No coverage.

Optional Benefits: Up t $75/week for first dependant and $25/week for each additional up to max $150/week.

Death & Funeral Benefit

A lump sum payout to your spouse and dependant(s) in the event of your death, with a separate lump sum for funeral expenses.

Standard Benefits: $25,000 to spouse, $10,000 to each dependant; up to $6,000 for funeral expenses.

Optional Benefits: $50,000 to spouse, $20,000 to each dependant; up to $8,000 for funeral expenses.

Indexation Benefit

Not provided in the Standard Benefits, this optional coverage adjusts the sum of Accident Benefit payments for which you are eligible annually as per the CPI of Canada over the course of time for which you receive benefits.

Standard Benefits: Not included.

Optional Benefits: Adjust annually to CPI.

Tort Deductible

The amount deducted from a settlement or court award for pain & suffering.

Standard Benefits: $36,500 deductible applies to any settlement.

Optional Benefits: Reduced $20,000 deductible is available.

Injuries – Minor Injury Guidelines, Non-Catastrophic & Catastrophic Injuries

Some benefits are activated only when an injury is ‘catastrophic’. While the revised legal definition for ‘catastrophic’ is complex, the criteria includes traumatic brain injury, loss of ambulatory mobility, loss of vision, etc., injuries requiring extensive care and medical attention. Minor injuries include sprains, strains, whiplash, abrasion, etc., insured to a maximum limit of $3,500. Non-Catastrophic injuries lie in the area between the Minor Injury guidelines and the Catastrophic definition.

Third Party Liability Insurance

Your policy also provides Third Party Liability coverage to respond to claims brought against you for bodily injury and/or damage to property of others caused by an auto accident arising out of the ownership or use of your vehicle. With the new changes and reductions in the Standard Accident Benefits, we strongly recommend you also consider purchasing increased limits of Third Party Liability coverage under your auto policy and/or purchasing a Personal Umbrella Liability policy.

Contact our office to discuss your existing limits of insurance or to purchase additional optional coverages.

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Getting a driver’s license is a huge step towards adulthood – and as a parent, you want your child to enjoy this new-found freedom in the safest way possible. Arranging appropriate auto insurance is an important part of this process. Here a few things to keep in mind when your child starts reaching for the keys.

Who Gets A Policy:

In Auto Insurance, the policy follows the ownership of the vehicle. If your child will be driving an existing family car when they get their license, they are to be added as a driver on your policy. Your auto insurer does require that they be aware of every licensed driver in the home, so regardless of how often you plan to let your child drive, you must notify your broker of the new driver.

If your child will be the owner of their own car, then a new insurance policy will need to be created in their name.

There are advantages to both options. Typically, it is less costly to add a new driver to an existing auto policy. That said, if your child has their own policy, then, if they are involved in an accident, their claim will have no impact on your own auto policy and insurance history.

Tips for Young Drivers:

Insurance costs have historically been higher for young drivers. And, while the statistical likelihood of these drivers being involved in a claim is much higher in their early years of driving, there are several ways to help mitigate the premiums for these drivers.

Enrolling your child in an accredited driver education course helps equip them with the skills they need and reinforces safe driving habits. Insurers recognize this by offering a driver’s training discount.

Maintaining a clean driving record is crucial in minimizing premiums related to young drivers. Remind your child to obey the rules of the road and avoid any distractions. Texting and driving, in addition to being extremely dangerous, can result in a ticket just the same as speeding or driving through a stop sign.

Some young drivers have enjoyed the benefits of telematics solutions on their policies. There are several options in the insurance marketplace, offering policies which use apps or devices attached to the car to track certain factors in the operation of the vehicle, such as rapid accelerations or hard braking. These optional programs offer a means of applying additional usage-based discounting that reward safer driving behaviours with reduced premiums. They have the added benefit of providing the driver with active feedback throughout the measurement period, meaning drivers can see how they are driving and adapt accordingly to try to improve their discount!

This is a very exciting time for your child, but can be an overwhelming process for parents. It is most important to remember to instill in your child the best driving practices and safe driving education. More than helping keep insurance costs down, it should (fingers crossed) give you some peace of mind while they are on the road!

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