Auto Insurance Reform 2016 – A Case Study

I have been putting out a lot of information regarding the car insurance change in Ontario, which will affect you on the first renewal of your car insurance policy, after June 1st, 2016. There has been lots of media attention as well, but despite this, there are reports that only 42% of residents of Ontario are aware of the changes, and 18% know what the changes mean.

These changes, and insurance in general, can be very confusing for some insurance clients. I have also discussed that everyone has different needs and that these changes allow your car insurance to be customized to what you need, while striving towards the goal of cheaper standard insurance across the province. I understand that this will be very confusing for people who don’t spend every day thinking about insurance (although I can’t understand why anyone would not want to do that ;->). This is why you need help from your Rhodes & Williams Insurance Broker.

I thought it might be helpful, that instead of speaking about hypothetical examples, we could look at a couple of early cases, and highlight the thought process of a couple of real clients. Here are a couple of examples that show you the thought process gone through by real people and clients, regarding the change. Due to client privacy, I cannot provide too many specific details, but I hope that it will help you think through your own situation and think about what you require. However, as you read these examples, please keep in mind that your requirements are very unique and none of this is specific information for your circumstances. Get your customized car insurance advice by speaking to one of our brokers.

Client #1

This existing Rhodes & Williams Insurance Broker client is a 35 year old single female living in Arnprior, Ontario. She drives a 2006 Honda Civic LX and her automobile policy renewal date is June 15th (after implementation of the new automobile reforms). She has been licensed for 18 years, with continuous insurance and no at-fault accidents or tickets. When a major change in auto insurance was implemented in 2010, after consulting with her trusted insurance broker, she made the decision to increase her coverage for medical & rehabilitation and attendant care to the respective limits of $100,000 and $72,000 from the standard limit offered of $50,000 and $36,000 respectively. She does have a group insurance plan through her employer, which would pay out second (after OHIP) however, as with most group plans, there are limitations that could leave her lacking in coverage in the event that she is injured in a car accident.

After discussions with her Rhodes & Williams Account Manager, she considered the new limits and costs based on her particular vehicle, its’ use, the territory in which she lives, her driving experience, and other characteristics unique to her. Her insurance broker gave her the information and advice needed, enabling her to make her own informed decision on what was right for her – car insurance customized.

Out of the many options presented by her insurance broker, she chose to increase the standard limit, and purchase a combined limit of $1 million for medical & rehabilitation and attendant care for non-catastrophic injuries and $2,000,000 limit for catastrophic injuries. She felt that at a cost of less than $4 per month, this was the right decision for her!

Client #2

This Rhodes & Williams client is a 43 and 42 year old married couple with one 11 years old son. They own two cars; a 2010 Hyundai Santa Fe GL V6 and a 2015 Hyundai Genesis V6 4 door. They have both been driving and insured since turning the ages of 16. When a major change in auto insurance was implemented in 2010, this client chose not to increase from the standard accident benefits at that time. They are re-considering with the most recent change and considering their options for their July renewal. They do have access to a group insurance plan through their employers, but as mentioned in case #1, there are limitations that could leave them lacking in coverage in the event that they are injured in a car accident.

Here are just a few of the things discussed with their Rhodes & Williams Insurance Broker:

  • Who would look after their 11 year old son if they were seriously injured in a car accident? (Caregiver Benefit, Dependent Care benefit)
  • Who would look after the house if they were unable to do so because of a car accident? (Housekeeping and home Maintenance Expenses)
  • How much of their income does their group insurance cover if they are unable to work due to a car accident? (Income Replacement Benefit)

This client is still considering their options prior to their July renewal, but have gotten pricing for an increase for medical and rehabilitations and attendant care benefit for catastrophic injuries to $2 Million (about $5 per month), increased medical rehabilitation for non-catastrophic injuries to $130,000 (about $14 per month for both vehicles) and indexation (which adjusts benefits annually to account for changes in inflation).

As you can see by these brief examples, there is a lot to consider, but it is simply too important to ignore. Everyone is unique and requires unique protection. Speak to your professional Rhodes & Williams Insurance Broker to make sure you have the right protection for you!