On June 1, significant changes to mandatory auto insurance in Ontario will go into effect. Although the changes will save drivers money in cheaper premiums, it will also reduce the amount of benefits you will receive if you are involved in a car accident.
The changes will reduce the cost for basic coverage by 3.7 per cent. This effort to make premiums more affordable has led to insurers reducing coverage and changing options for increased coverage. The most significant change is the reduction of catastrophic medical rehab and attendant care from a combined to $2 million to just $1 million.
Motorists are encouraged to educate themselves on the changes. If your policy is set to be renewed on or after June 1, you are advised to thoroughly review your policy and act quickly to purchase additional optional coverage.
By spending a few extra dollars a month on optional benefits, you are better protecting yourself and your family against the costs associated with catastrophic injuries that can occur in an accident. Increasing your family protection and third party coverage to at least $2 million can help save you a lot of stress and anguish if you or a family member is involved in a serious accident.
Serious injuries, such as a brain or spinal injury, can lead to high medical bills and may even prohibit you from returning to work. In these situations, you will quickly exhaust a $1 million benefit amount. The added coverage will help ensure you have more of what you need in the event that tragedy strikes.
The Financial Services Commission of Ontario recommends you do four things to ensure you know how your auto insurance coverage is changing:
- Read the “Important Changes to Your Policy!” document that comes with your auto insurance renewal package to see how your policy has changed.
- Compare your current policy to your renewal policy to see what has changed and if you will need additional coverage.
- Make sure you understand your policy by calling your insurer with any questions you have. It is important to know what options are available to ensure you are protected in the event of an accident.
- Shop around for better prices and coverage from another provider.
If you are involved in an accident and are not receiving the benefits you should from your auto insurance company, contact Greg Monforton & Partners. Our experienced intake team provides free legal and insurance advice to all callers and our accomplished team of car insurance lawyers can help you take legal action, if necessary, to get the benefits you deserve.