Car insurance in Ontario is changing – what you need to know
Apr 11, 2016 1 minute read
Effective June 1, 2016, the Ontario government will introduce changes to car insurance in an effort to make insurance premiums more affordable. These changes provide consumers with more choice when it comes to coverage levels, with most of the changes impacting the Statutory Accident Benefits coverage you receive.
If your car insurance is set to renew on or after June 1, 2016, there are important coverage decisions you will need to make before you renew your policy.
After June 1, the standard car insurance policy you will receive from your insurer will automatically feature new lower benefits. These benefits may or may not fit your situation.
What you need to do:
It is important to consider if these new limits are appropriate for you and your family. Your BrokerLink broker can help you review your coverage and discuss your options for purchasing additional coverage and protection.
Key changes you need to be aware of:
Other important changes to be aware of:
Mandatory third-party liability coverage protects an insured Ontario driver and/or car owner in the event that someone is killed, injured or suffers property damage as a result of the driver’s negligence. For a minor injury, no-fault medical payments are limited to $3,500. Additional limits for non-minor and catastrophic injuries apply. Ontario residents have the option to buy additional coverage depending on their needs.
All drivers in Ontario will continue to be required to carry the following types of coverage on their vehicle:
- Third Party Liability coverage – protects you when someone is injured or killed, or property is damaged in the event of a collision. This coverage also pays for legal fees associated with claims.
- Uninsured Automobile coverage – protects you and your family if you are injured or killed by a hit-and-run or uninsured motorist.
- Direct Compensation for Property Damage – If another driver is found to be at-fault, this coverage provides compensation for your vehicle and any contents inside, including loss of use contents.
- Statutory Accident Benefits – If you are injured in a collision, accident benefits will provide coverage for expenses not covered by OHIP, including rehabilitation or loss of income.
For full details on all of the changes being made to Ontario car insurance click here.
When it comes to insurance, we know that you have several options available to you. Your BrokerLink broker is your trusted guide when navigating the complicated world of insurance.
Upon your renewal unless otherwise stated, your car insurance coverage will default to the new lower standard benefits. Contact your BrokerLink broker today to discuss your options and find the coverage that is right for you and your family.