Providing More Choice to Consumers:
What you need to know about changes to auto insurance in
Ontario
The Ontario government is introducing significant reforms to the
auto insurance system, in order to provide you, the consumer, more
choice over the coverages and price you pay for insurance. These
additional accident benefit choices will allow you to customize
your policy to suit your needs.
Standard Auto Insurance Policy
In Ontario, the Insurance Act determines the standard coverage
that consumers must purchase. As a result of the reforms,
some of the features under the Standard Auto Insurance Policy have
changed. Beginning September 1, 2010, if you are either
buying a new auto insurance policy or renewing an existing one, you
will have more options to purchase a level of coverage that is
right for you.
All auto insurance policies will continue to include the
following:
In addition, if you previously purchased Collision and/or Comprehensive
coverage, it will still be included in your policy.
Beginning September 1, 2010, if you are buying a new
policy or renewing an existing one, you have the following options
with respect to Statutory Accident Benefits
(also see the Auto Reform Coverage Summary
Page):
|
Coverage
|
Coverage under your existing auto insurance
policy
|
Coverage under New Standard Auto Insurance
Policy
|
Options available to increase your benefits
|
|
Medical, Rehabilitation and Attendant Care
benefits
- for non-catastrophic injuries
|
$100,000 for medical and rehabilitation benefits; $72,000 for
attendant care benefits.
|
$50,000 for medical and rehabilitation benefits, including
assessment costs; $36,000 for attendant care benefits.
|
$100,000 or $1,100,000 for medical and rehabilitation benefits
including assessment costs;
$72,000 or $1,072,000 for attendant care benefits.
|
|
Medical, Rehabilitation and Attendant Care benefits
- for catastrophic injuries
|
$1,000,000 for medical and rehabilitation benefits; $1,000,000
for attendant care benefits.
|
$1,000,000 for medical and rehabilitation benefits including
assessment costs; $1,000,000 for attendant care benefits.
|
An additional $1,000,000 for medical, rehabilitation and
attendant care benefits including assessment costs.
|
|
Caregiver benefit
|
Up to $250 per week for the first dependant plus $50 for each
additional dependant; available for all injuries.
|
Up to $250 per week for the first dependant plus $50 for each
additional dependant; available only for catastrophic
injuries.
|
Up to $250 per week for the first dependant plus $50 for each
additional dependant; available for all injuries.
|
|
Housekeeping and Home Maintenance
expenses
|
Up to $100 per week, available for all injuries.
|
Up to $100 per week, available only for catastrophic
injuries.
|
Up to $100 per week, available for all injuries.
|
|
Income Replacement benefit
|
80 per cent of net income up to $400 per
week.
|
70 per cent of gross income up to $400 per
week.
|
Weekly limit can be increased to $600, $800 or $1000 per
week.
|
|
Dependant Care benefit
|
Not provided.
|
Not provided.
|
Up to $75 per week for the first dependant and $25 per week for
each additional dependant to a maximum of $150 per week.
|
|
Death and Funeral benefits
|
$25,000 lump sum to an eligible spouse; $10,000 lump sum to each
dependant; maximum $6,000 funeral benefits.
|
$25,000 lump sum to an eligible spouse; $10,000 lump sum to each
dependant; maximum $6,000 funeral benefits.
|
$50,000 lump sum to an eligible spouse; $20,000 lump sum to each
dependant; maximum $8,000 for funeral benefits.
|
|
Indexation benefit - applicable to
income replacement benefit, non-earner benefit, caregiver benefit,
attendant care benefit or medical and rehabilitation benefit
|
Not provided.
|
Not provided.
|
Annual adjustment according to the Consumer Price Index for
Canada.
|
You also have new choices to customize your deductibles - the
portion of a loss that you are required to pay.
- Tort deductible - You have the
option to reduce the deductible associated with court awarded
compensation for pain and suffering to $20,000 from $30,000, and
for Family Law Act claims to $10,000 from $15,000.
- Direct Compensation - Property Damage
Coverage - You have the option of a $500, $300 or no deductible
at all on coverage to repair the auto of the driver who is
not-at-fault.
What Else is New?
The government's reforms lay the foundation for an auto
insurance system with greater price stability, and more protection
for you, the consumer. Other key changes include:
- Many injuries received in an
auto accident are minor. If you have a minor injury due to an
auto accident, your medical and rehabilitation accident benefits
are limited to $3,500 regardless of the coverage level you have
selected.
- Accidents where you are 25 per cent or less at-fault will no
longer affect your premium.
- The deductible that is applied to court awards for fatal
accidents has been eliminated.
- A new requirement that insurance companies send out benefit
statements to their claimants, advising how much has been paid to
date, and the additional amounts remaining for medical,
rehabilitation and attendant care benefits.
- If your auto has been damaged or written off after an accident
and you don't agree with the value you have been offered or your
degree of fault for the accident, you can choose the appraisal
process outlined in the Ontario Auto Policy to settle the dispute,
and the insurer must agree to participate.
- Coverage is extended to rented autos with a Gross Vehicle
Weight Rating (GVWR) of more than 4,500 kilograms, if for personal
use and rented for up to 7 days.
- Prohibiting use of credit scores in giving quotations for your
auto insurance rates
What do the Coverages Mean?
| Statutory Accident
Benefits: are benefits you receive if you are injured in
an auto accident, regardless of who was at fault. Most of the
new reforms affect these benefits. |
| Third Party
Liability: Claims made by a driver against another driver
who causes an accident. |
| Uninsured Auto coverage: Protects you and your
family if you are injured or killed by a hit-and-run driver or by
an uninsured motorist. It also covers damage to your vehicle caused
by an identified uninsured driver. |
| Direct
Compensation-Property Damage (DC-PD): Covers damage to
your vehicle or its contents if another person was at fault for the
accident. It is called direct compensation because even though
someone else causes the damage, you collect directly from your own
insurer. The accident must also occur in Ontario and both drivers
must be insured by an insurance company licensed in the
province. |
| Collision or
Upset coverage: Pays for losses caused when your vehicle
is involved in a collision with another object, including another
vehicle, or rolls over. |
| Comprehensive coverage: Pays for
losses for certain perils, such as falling or flying objects, and
vandalism. |
| Medical and
Rehabilitation Benefit: Covers the cost of reasonable and
necessary medical and rehabilitation expenses (e.g., physiotherapy,
prescriptions) that are not covered by OHIP or your disability
insurance plan. |
| Attendant Care Benefit: Pays for
an aide or attendant to look after you if you have been seriously
injured in an accident. |
| Catastrophic injury: If you suffer
an injury in an accident, you can apply for a determination of
whether your injury qualifies as "catastrophic" (e.g. loss of a
limb, paraplegia). If the injury qualifies as "catastrophic,"
you are eligible for an increased level of benefits. |
| Caregiver
Benefit: If you are providing full-time care to dependants
and can no longer provide that care as the result of an auto
accident, you may be eligible for caregiver benefits to reimburse
you for your expenses to hire someone to care for your
dependants. |
| Housekeeping and Home Maintenance
expenses: If you are unable to perform your usual
duties due to your injuries, this benefit pays for reasonable and
necessary additional expenses for someone to complete your usual
duties. |
| Income Replacement
Benefit: If you cannot work as the result of an auto
accident, you may be eligible for basic weekly income replacement
benefits of up to $400. This benefit commences after one
week. |
| Dependant Care Benefit:
Pays for additional expenses incurred to care for your dependants
if you are employed and are injured in an auto accident. |
| Death
and Funeral Benefit: If you die as a result of an auto
accident, the death benefit provides a lump sum payout to your
spouse and your dependant; the funeral benefit provides a lump sum
payout to cover the cost of your funeral expenses. |
| Indexation
Benefit: The automatic adjustment of the income
replacement benefit, non-earner benefit, attendant care benefit or
medical and rehabilitation benefit according to the Consumer Price
Index for Canada to compensate for inflation. |
| Tort
Deductible: The amount that is deducted from a
settlement or court award for pain and suffering. |
| OPCF
44R: Covers you for the difference between the
at-fault driver's Third Party Liability limit and your own Third
Party Liability limit if someone with less liability coverage than
you injures you in an accident. |
Injured in a Motor Vehicle Accident?
- A number of rules governing accident benefit claims change
September 1, 2010. For updates on these changes, please
contact your insurance company.
- Many injuries received in an auto accident are minor. If
you have a minor injury due to an auto accident, your medical and
rehabilitation accident benefits are limited to $3,500 regardless
of the coverage level you have selected.
|
Videos:
|
For more information on your coverage choices, or to
modify your policy, contact your Rhodes & Williams Insurance
Broker representative:
Rhodes & Williams Insurance Brokers
Click
here for contact information
|
For general information about changes to auto insurance
in Ontario, contact:
Financial Services Commission of Ontario
(416) 250-7250
Toll-free 1-800-668-0128
TTY (416) 590-7108
1-800-387-0584
www.fsco.gov.on.ca
Consumer Information Centre
Telephone (416) 362-9528
Toll-free 1-800-387-2880
www.ibc.ca
|
Auto Reform Menu