In an effort to make premiums more affordable for car owners, the Financial Service Commission of Ontario (FSCO) has made changes to auto insurance rates and coverages as of June 1, 2016. These changes were brought on by the decision made by the Ontario government in 2013 to lower insurance premiums by %15.
It is important to review the changes to your policy when renewing or purchasing on or after June 1, 2016 to see if something was reduced or eliminated that was important to your coverage. Contact Oakville Insurance Brokers if you are unclear about the changes being made and how they may affect your auto insurance policy.
Changes To The Auto Insurance Policy In Ontario
Among some of the most significant changes were those made to statutory accident benefits:
- Benefits for Medical and Rehabilitation for non-catastrophic injuries ($50,000) and Attendant Care for non-catastrophic injuries ($36,000) have been combined and reduced to $65,000 total.
- Benefits for Medical and Rehabilitation for catastrophic injuries ($1,000,000) and Attendant Care for catastrophic injuries ($1,000,000) have been combined and reduced to $1,000,000 total.
To learn more about changes to statutory accident benefits and how the optional benefits have been altered visit the FSCO website here.
Other important changes to the auto insurance policy in Ontario include:
- Minor Accident: Insurers can no longer use minor at-fault accidents to increase your premiums. The criteria include that there were no injuries and that damages were less that $2,000 and paid in full by the at-fault driver without the aid of the insurer. Limited to one minor accident every 3 years
- Interest Rate for Monthly Payment Plans: Maximum interest rate for monthly premium payments lowered from 3% to 1.3% for 1 year policies. Corresponding reductions for shorter terms.
- Comprehensive Deductible: Increased standard deductible for Comprehensive coverage has been increased from $300 to $500
To learn more about important changes to the auto insurance policy in Canada, contact Oakville Insurance Brokers to speak to your broker and have them assess your current benefits.