The phone rings and it’s your auto insurance company, calling to tell you that your car insurance policy is ready for renewal. It’s time to take a look to see if your existing car insurance coverage meets your current needs.
You stifle a groan, knowing you should sit down and re-assess your coverage, but you’re tempted to just go with the status quo and hope for the best.
Maybe that worked out fine for you in the past, but car insurance in Ontario has changed dramatically since 2010, when Ontario auto insurance reforms took effect.
Ontario auto insurance reforms affect everybody’s auto insurance coverage.
In Ontario, the Financial Services Commission of Ontario regulates car insurance rates and we have a Standard Automobile Insurance Policy, regulating what’s in every policy, and what is optional.
In September 2010 the Ontario government made changes to the accident benefit coverage section contained within the Standard Automobile Insurance Policy in the province of Ontario.
The government implemented auto insurance reform in the hopes of stabilizing the ongoing challenge of auto insurance in Ontario. Some of the measures in the legislation are aimed at reducing auto insurance fraud. And, we know that car insurance fraud pushes up all our premiums.
What is car accident benefit coverage?
Auto accident benefit coverage is what covers the policyholder, spouse/partner, dependents and any other occupants should they be hurt in an automobile accident. So it’s important that you take a very careful look at this part of your car insurance coverage, if you haven’t already.
54% of Ontarians involved in automobile accidents suffer from some sort of injury.
Since September 2010, injuries that occur as a result of a car accident fall into three basic categories, Catastrophic, Serious or Minor. Each of these car accident injury categories will determine the level of benefits that will be available to a claimant through their car insurance coverage.
Catastrophic injuries
The testing process required to be deemed `Catastrophically' injured is extremely stringent, and as a result, fewer than 10% of accident victims will qualify for higher-level accident benefits provided under this injury category.
Serious injuries
Instead, many automobile accident victims will be deemed to have sustained `Serious' injuries, which often involve broken bones or severe strains. As such, the injuries usually disrupt the injured person's quality of life for a prolonged period of time.
Minor injuries
Many auto accident injuries received in an auto accident could also be considered 'Minor'. If you experience a minor injury due to an auto accident, your medical and rehabilitation accident benefits are limited to $3,500 regardless of the coverage level you have selected.
The table below shows how the type of injury affects your accident benefit coverage, and what optional car insurance coverage offers you in additional benefits.
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