Recent Changes to Auto Insurance in Ontario

As of June 1^st, 2016, the Ontario government has updated the automobile insurance legislation in Ontario. It’s important that you, as a consumer, understand that Ontario auto coverage is changing. These changes continue the trend of more choice for the consumer. Products can be tailored to suit your individual needs, lifestyle, and budget. PAIB Insurance Inc. is committed to helping you understand the Ontario government changes and the choices available to you.

* Medical, Rehabilitation, and Attendant Care Benefits for minor injuries are fixed at a max limit of $3500 regardless of options purchased

** If you purchase both the Medical, Rehabilitation, and Attendant Care Benefit for catastrophic injuries and for all injuries, the total eligible benefit amount for catastrophic impairment would be $3,000,000

Should you require further explanation, please call your broker or visit www.fsco.gov.on.ca

OTHER KEY CHANGES INCLUDE:

MINOR ACCIDENT

Insurers can no longer use a minor at-fault accident that occurs on or after June 1, 2016 (and meets certain criteria) to increase your premiums – the criteria is as follows: no payment has been made by any insurer, that there are no injuries, and that the damages to each car and property were less than $2,000 per car and were paid out 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 all of your 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. If you carry comprehensive coverage on any of your vehicles, including ATVs and snowmobiles, your renewal on or after June 1^st, 2016 will reflect the new standard deductible ($500). Should you wish to reduce the comprehensive coverage to $300, please give PAIB Insurance Inc. a call to request this change. Please note a minimal premium increase will apply.

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.

DEFINITIONS:

THIRD-PARTY LIABILITY COVERAGE

This section of your automobile insurance policy protects you if someone else is killed or injured, or if their property is damaged in an automobile incident. It will pay for legitimate claims as a result of lawsuits against you up to the limit of your coverage and will pay the costs of settling the claims. PAIB Insurance Inc. recommends that your liability limit coverage be set at a $1,000,000 minimum. We would also like you to consider increasing your liability limits to $2,000,000.

STATUTORY ACCIDENT BENEFITS COVERAGE

This section of your automobile insurance policy provides you with benefits, including supplementary medical, rehabilitation, attendant care, caregiver, non-earner, and income replacement benefits if you are injured in an automobile accident, regardless of who caused the accident. 

OPTIONAL LOSS OR DAMAGE COVERAGE (a deductible applies to all the coverages below):

SPECIFIED PERILS COVERAGE

This coverage pays for losses caused by one of the following perils: fire; theft or attempted theft; lightning, windstorm, hail, or rising water; earthquake; explosion; riot or civil disturbance; falling or forced landing of an aircraft or parts of an aircraft; the stranding, sinking, burning, derailment, or collision of any kind of transport in, or upon which, an insured vehicle is being carried on land or water.

COMPREHENSIVE COVERAGE

This coverage pays for losses, other than those covered by Collision or Upset, including perils listed under Specified Perils, falling or flying object, missiles, and vandalism.

COLLISION OR UPSET COVERAGE

This coverage pays for losses caused when an insured vehicle is involved in a collision with another object (including another vehicle) or rolls over. “Object” includes another vehicle or a trailer that is attached to the vehicle that is covered by your insurance policy, the surface of the ground, and any object in or on the ground.

ALL PERILS COVERAGE

This combines Collision or Upset and Comprehensive coverages. In addition, it covers loss or damage caused if a person who lives in your home steals the vehicle that is covered by your insurance policy. All Perils also covers you if an employee who drives or uses, services, or repairs that vehicle ends up stealing it.