Frequently Asked Questions on Auto Insurance Reforms

The limits that you require are dependant on your individual circumstances. You may want to consider things such as whether or not you have collateral benefits through a private plan or employer, or whether you have any dependants to determine your needs for higher limits.

Although there will be no change to your coverage until renewal, it is possible to change to the new standard accident benefits now. However, because so many factors impact your premium, it does not necessarily mean that your premium will decrease.

Your premium is based on many different factors. The intent of these reforms is to provide overall rate stability. Without these new reforms, the price of automobile insurance would continue to rise considerably to cover the rising costs of accident benefit claims. Rather than providing an immediate decrease, these reforms will help stabilize your rates over the long term.

The major change is related to Standard and Optional Accident Benefits coverage, which will provide consumers with more choice and the ability to customize their coverage to suit their needs and budgets. There are other smaller changes that will be introduced as well. Also note that detailed information on these changes will be included in your renewal package, which will be sent approximately 2 months before your renewal date.

The reforms are effective as of September 1, 2010. Your current coverage choices and premiums will not be impacted until your policy renews September 1, 2010 and onwards.

The percentage of fault in Ontario is determined by Fault Determination Rules that are regulated and consistently applied to all automobile accident claims in Ontario. Your claims adjuster would advise you of the percentage of fault at the time of a claim.

The changes will affect each person differently depending on their circumstances and the levels of coverage chosen. There will be no change to your coverage until renewal. It is not necessary to do anything at this time, and you will receive more information with your renewal package.

To determine if you have a need for Optional Accident Benefits, some of the elements that you may want to consider are:

• Are you, your spouse and dependants eligible for OHIP?

  If so, remember that OHIP will continue to cover some of the medical expenses incurred as a result of a motor vehicle accident.

• Do you have collateral benefits through your employer or a private plan?

  If so, and the coverage is sufficient, you may not need to buy optional accident benefits. Collateral benefits are primary coverage and the coverages on your automobile policy are considered secondary to those.

• Does 70% of your gross weekly income exceed $400/week?

  If not, or if you have short-term / long-term disability coverage, then you may not need to purchase the optional Income Replacement coverage.

• Do you have someone who could assist you with housekeeping and home maintenance duties if you were injured in an automobile accident, or would you have to pay someone?

  If you have a friend or family member who could assist with housekeeping and home maintenance duties, then you may not need to purchase this optional benefit.

• Do you provide full-time care to a dependant? If so, and you were unable to do so as a result of an automobile accident, do you have someone who could assist you or would you have to pay someone?

  If you have a friend or family member who could assist with providing care to a dependant, then you may not need to purchase this optional benefit.

• Do you, your spouse and dependants have life insurance?

  If so, then it may not be necessary to increase the standard death and funeral benefit.