Auto Insurance Premiums Are Going Down… Along with Coverage and Benefits
Starting June 1, 2016, auto insurance premiums in Ontario are going down. Good news, right?
Not even close. The Financial Services Commission of Ontario (FSCO) says that in order to make insurance premiums more affordable, it has to reduce the benefits and coverage you receive.
These changes are substantial and affect the most critical aspects of auto insurance. You can see all the changes that will come into effect here; it is well worth your time to review them.
One of the biggest reductions is that coverage for medical, rehab and attendant care for catastrophic injuries will be cut in half, from $2 million to $1 million.
For non-catastrophic injuries, medical and rehab coverage and attendant care coverage drop from $50,000 and $36,000 respectively to $65,000 combined.
The Ontario Trial Lawyers Association (OTLA) notes that “In order to reduce insurance premiums by about 10%, the government has cut medical and care benefits for people in wheelchairs and those with severe brain injuries by $1million. So, in exchange for about $150 per insurance policy, you and your family will now not have the protection that you need to recover and have the quality of life you deserve”.
The OTLA therefore urges consumers to use the “savings” offered by lower insurance premiums to purchase optional catastrophic injury coverage for medical, rehabilitation and attendant care, bringing it back to $2M.
NB: For current policy holders, this reduced coverage will not occur until June 1, 2017. New policies taken on or after June 1, 2016 will be subject to these reductions.