Your car insurance coverage changes effective
your first renewal on or after September 1st,
2010.
Over the coming months, you
are going to be hearing about the fact that your automobile insurance is changing. Every 5
years, there is a mandated review of the auto insurance coverage.
The outcome of this review will result in changes to the coverage
that you currently have. At this time, Ontario has the highest
level of standard coverage in Canada. These are coverages that you
pay for, in your automobile insurance premium.
Due to rapidly escalating
claims and assessment costs (Did you know that currently for every
$1 spent on treatment to make you better after a car accident,
$0.60 is spent on assessments?!), in order for insurance companies
to be able to continue to provide the product to residents of
Ontario, premiums were projected to continue rising sharply. The
hope is that these changes will slow down that rise in premium
costs, and enable us to continue to provide affordable car
insurance in Ontario. After the changes take effect, Ontario will
still have the highest level of standard coverage in Canada
(although it will be more similar to levels in other provinces),
with "Buy-Back" options provided.
We will be providing our
clients with more information in the coming months, but for now, it
is important to know that your coverage will be changing
on your first renewal on or after September
1st, 2010, and execution of claims
process will change for claims occurring on or after September
1st, 2010. You will be getting a letter from your
insurance company to this effect, towards the end of June. Keep
your eye on our website (auto reform guide)and blog
for more information.