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Your Auto Insurance is changing

 

Effective June 1, 2016 renewals, the Ontario government has introduced changes to automobile insurance to make insurance premiums more affordable and stabilize rates.

 

It's important that you understand how these changes have affected you. Be sure to watch the video above that summarizes the changes or refer to the chart below.

At Allen Insurance Group we have solutions for you to ensure that you have sufficient coverage as it renews.

Most significant changes

Whether you are buying a new policy or renewing an existing one, you should be aware of the most significant changes to statutory accident benefits:

 

Benefit

Current Policy

New Policy

Medical and Rehabilitation for non-catastrophic injuries
Attendant Care for non-catastrophic injuries
$50,000
$36,000
These benefits have been combined and reduced to $65,000 total
Medical and Rehabilitation for catastrophic injuries
Attendant Care for catastrophic injuries
ac
$1,000,000
$1,000,000
These benefits have been combined and reduced to $1,000,000 total ​

 

Have questions?
Click the Connect tab on the left to chat with us.

 

Some important things to remember about these benefits:

  • If you have previously chosen to purchase optional benefits to increase these amounts, check your policy or talk to us – they may have changed to reflect amounts available in new options.
  • Medical, Rehabilitation and Attendant Care benefits for minor injuries are fixed at a maximum limit of $3,500.

 

The chart below illustrates the overall benefit limits available depending on which optional benefit or combination of optional benefits you purchase, if any:

 

Options:
Medical, Rehabilitation and Attendant Care

Maximum for
Non-catastrophic injuries

Maximum for
catastrophic injuries

Standard: No options purchased $65,000** $1 million
$130,000 combined (non-catastrophic injuries)* $130,000** $1 million
$1 million (all injuries)* $1 million $2 million
$1 million (catastrophic injuries) $65,000** $2 million

Combinations:

$130,000 combined (non-catastrophic injuries)
+ $1 million (catastrophic injuries)
$130,000** $2 million
$1 million (all injuries) + $1 million (catastrophic injuries) $1 million $3 million

 

*$130,000 optional combined (non-catastrophic injuries) and $1 million optional (all injuries) cannot be purchased together.

** Duration of benefit is five (5) years for adults.

Other Optional Benefits

There are many other options available to purchase additional or increased benefits and coverages. The following chart lists some but not all of those and indicates if those options changed on June 1. You can also choose not to increase any benefit or coverage. If you have previously purchased any optional benefits, you should review your renewal documents as they may have changed.

Benefit/
Coverage

Current Policy

New Policy

You can choose

Income Replacement benefit

70 per cent of gross income up to $400 per week. No change To increase the weekly limit to $600, $800 or $1,000 per week.

Caregiver benefit

Available only for catastrophic injuries: Up to $250 per week for the first dependant plus $50 for each additional dependant. No change To make the same amounts available in current policy for catastrophic injuries available for all injuries.

House
keeping and Home Maintenance expenses

Available only for catastrophic injuries: Up to $100 per week. No change To make the same amounts available in current policy for catastrophic injuries available for all injuries.

Death and Funeral benefits

$25,000 lump sum to an eligible spouse; $10,000 lump sum to each dependant; maximum $6,000 funeral benefits. No change $50,000 lump sum to an eligible spouse; $20,000 lump sum to each dependant; maximum $8,000 funeral benefits.

Dependant Care benefit

Not provided Not provided To purchase this benefit and add up to $75 per week for the first dependant and $25 per week for each additional dependant to a maximum of $150 per week.

Indexation benefit

Not provided Not provided To add an annual adjustment for inflation for many benefits according to the Consumer Price Index for Canada to your policy.

Third Party Liability

$200,000 minimum for claims as a result of lawsuits against you. No change Options exist to increase the minimum amount.

Tort Deductible

$36,905.40 deductible for court awarded compensation for pain and suffering (Jan 1-Dec 31, 2016). No change Reduce deductible by $10,000 regardless of annual indexation percentage increases.

 

Have questions?
Call us at 1-877-924-2632.

 

What else is new?

Other key changes include:

 

 

Minor Accident

Insurers can no longer use a minor at-fault accident that occurs on or after June 1, 2016 meeting certain criteria to increase your premiums. The criteria include that no payment has been made by any insurer, that there are no injuries, and that damages to each car and property were less than $2,000 per car and were paid by the at-fault driver. This provision is limited to one minor accident every three years.

Interest Rate for Monthly Payment Plans

The maximum interest rate that insurers can charge if you make monthly premium payments has been lowered from 3% to 1.3% for one year policies, with corresponding reductions for shorter terms.

Comprehensive Deductible

The standard deductible for Comprehensive coverage has been increased from $300 to $500.

 

Non-Earner benefit

The six-month waiting period for people who are not working to receive benefits has been reduced to four weeks. Conversely, benefits can now only be received for up to two years after the accident.

Duration of Medical, Rehabilitation and Attendant Care benefits

For all claimants except children, the amount of time that you can receive this standard benefit is now five years for non-catastrophic injuries, and it will be paid only as long as you remain medically eligible.

To get a quote or to talk to an expert call

1-877-924-2632

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