In the province of Ontario, the government’s Insurance Act mandates the minimum amount and type of auto insurance that consumers have to have. On September 1, 2010, Ontario instituted several changes for to this policy. These changes were instituted by the government in order to help consumers get more choice and flexibility as well as rates they can afford. Two of these changes include the choice to purchase additional accident benefit options and to customize a policy even more extensively than before.
Standard Coverage in Ontario
Under these changes, standard coverage that all consumers will be required to have are third-party liability, uninsured auto coverage, direct compensation-property damage and statutory accident benefits. Statutory accident benefits provide money if someone under the policy is injured in a car accident. These benefits have been majorly affected by the new changes. For example, medical and rehabilitation benefits for non catastrophic injuries have dropped from $100,000 to $50,000, and attendant care benefits for non catastrophic injuries have dropped from $72,000 to $36,000. New options for these benefits have been added, so you can purchase benefits for up to $100,000 or $1,100,000 for medical and rehabilitation or $72,000 or $1,072,000 for attendant care benefits.
Another example of a change is the income replacement benefit, which used to be 80 percent of net income up to $400 per week and is now 70 percent of gross income up to $400 a week. The new options include the ability to increase the weekly limit to $600, $800 or $1000 per week.
The new changes also allow you the options that affect your deductible. A deductible is the amount of money you are required to pay before your insurance policy kicks in. You can sign up for a tort deductible, which lets you reduce the deductible associated with court awarded compensation for pain and suffering from $30,000 to $20,000. There’s also direct compensation – property damage coverage which gives you the option of $500, $300 or no deductible when repairing the vehicle of the driver who is not at fault.
One of the most welcome changes is that accidents where you are 25 percent or less at fault will not affect your premium. Another change is that if your car has been written off after an accident and you are offered a sum of money that you think is too low, you can choose the appraisal process to settle the dispute and the insurer has to agree with your choice of process.