Ontario Auto Insurance is Changing
To help stabilize rates, the Ontario government has implemented changes to auto insurance. Several measures are aimed at reducing fraud and abuse within the system, which historically have increased overall premiums. New regulations include lower accident benefit limits with new options to increase coverage if you as the policy holder decide are required. There are also new procedures for payment and a mandatory Winter Tire Discount (up to 5%) offered by insurance companies across Ontario.
The auto reform changes will come into effect June 1, 2016, but your policy will not change until your next renewal date.
Why does any of this matter?
Car insurance can sometimes seem frustrating – a monthly expense that could be used elsewhere. It’s perhaps only at renewal when you might think about the greater issues at play: insurance as a safety net, protecting against risk; insurance as a critical factor in individual and collective welfare. If you, a friend or loved one is involved in an accident, it’s at that point we want to be sure you are protected.
The opportunity with this new set of measures is to step back and reflect on what you really need. Does your employer provide a Group Insurance Plan? Look into what your policy covers… most benefit packages are limited to $500/year per practitioner, which can be exhausted quickly even in cases of minor accidents. If you have children or elderly parents that depend on you, who would care for them if you were injured? If you had to hire someone to carry out household responsibilities, how would you subsidize the expense?
Standard policies are just that – standard. They don’t include benefits like dependant care, which reimburses additional expenses to care for your dependants. While auto insurance products are becoming more affordable for consumers, gaps might exist depending on your lifestyle. The good news is there’s opportunity to fill those gaps by increasing coverage or adding options to cover specific areas of your life. Purchasing appropriate coverage is an investment in your family, your children, your parents… ultimately it’s an investment in your lifestyle. The video below outlines some of the ways a standard policy may not be right for everyone and how customizing a plan that suits your needs may be beneficial.
As your lifestyle changes, so do your coverage needs. Regular reviews of your policy will ensure you have the coverage best suited to your lifestyle.
Due to these recent and upcoming changes, it’s the right time to reassess your policy. At renewal, the standard coverage your policy has for Medical, Rehabilitation and Attendant Care will be combined and lower limits will apply, so be sure to talk to your broker to see what changes may be necessary for you.
Know your options! And contact your Northern insurance broker about customizing your auto insurance. It could be the best decision you’ve ever made.