Do you have enough insurance?

On September 1, 2010, significant changes were made to the mandatory insurance coverage for every person who drives a car in Ontario. Every automobile insurance policy includes no-fault benefits to cover you if you are hurt as the result of a car accident. Before September 1, 2010, these no-fault benefits included:

  • $100,000 for medical and rehabilitation benefits
  • Payment of up to $100 per week to have someone help you (including unpaid family members) with your housekeeping and home maintenance duties
  • income replacement benefits equal to 80% of your net income
  • attendant care benefits

After September 1, 2010, your benefits have been drastically cut! For all policies renewed after September 1, 2010, the medical and rehabilitation benefits have been cut in half to $50,000, housekeeping and home maintenance benefits are optional (you have to pay extra for this coverage), income replacement benefits are now 70% of gross income and attendant care benefits have been eliminated for all but the most serious injuries. You can still purchase some of these benefits these benefits are now options as opposed to being the statutory minimums. For a complete review of the changes to the auto insurance accident benefits go to the following link: http://www.fsco.gov.on.ca/en/auto/brochures/Pages/brochure_changes10.aspx.

To make sure that you have enough coverage to protect you and your family, you should speak to your insurance representative or broker about these now optional benefits.

This is just another example of insurance companies cutting benefits without a corresponding cut in your premiums. Alan Shanoff from the Toronto Sun provides an interesting commentary on these changes and how they affect the average driver to the benefit of the insurance companies. http://www.torontosun.com/2011/04/21/shanoff-demand-answers-before-renewing-your-car-insurance

If you have any questions about your legal rights following a motor vehicle collision, please call us at Bonn Law.