June 1st 2016 Is D-day for Auto Insurance Coverage In Ontario. Here’s What You Need to Know

Ontario’s June 1st Auto Insurance Changes
For most people in Ontario, car Insurance is just another necessary monthly cost. Protecting ourselves and are loved one’s is our main objective.

Don’t Sell Your Soul To The Lowest Bidder
Be advised! Ontario Automobile changes that come into effect June 1st, 2016 have the potential to leave you and your family exposed to serious risk in the event of a catastrophic injury.

Doing The Math

Most of us are delighted to hear the costs of car insurance premiums are going down. But are they really? If you pay less and get less, does that really mean you have saved? The pleasure we first felt, turns to shock when we realize we were not covered for what we thought.

Don’t Be Duped.
The new auto Insurance changes that come into effect June 1st 2016, in Ontario, bring the same or lower premiums with far less coverage.

What Does Mandatory Insurance Include?
Automobile insurance is mandatory in the province of Ontario. By law, our insurance must cover us for:

• Third party liability
• Uninsured automobile
• Direct compensation-property damage
• Accident Benefits including:
• Medical costs
• Death benefits
• Funeral expenses

Basic insurance provides a limited amount of benefit coverage. In a car accident causing serious personal injury – these funds compensate for the pain and suffering caused by disfigurement and loss of functional ability physically, mentally and/or psychologically. What happens if required costs are higher than the mandatory limit of coverage, and the policy holder only has the mandatory coverage?

After a quick look over the list, it might appear that everything we need is there. Except… Life changing accidents can leave one or more people with a traumatic brain injury, blind, or with catastrophic impairment.

• Limits for rehabilitation and care  for those catastrophically impaired has been slashed from $2,000,000 to $1,000,000. The new changes have also tightened the definitions of which type of injuries qualify for this significantly reduced coverage.

• Coverage limits for medications were at $50,000 and  rehabilitation and attendant care was at $36,000. These benefits have now been combined and reduced from $86,000 for both to $65,000 for both benefits.

• Benefits for those who are not employed at the time of the injury have been maxed out at 2 years. Before the June 1st changes these non earner benefits were payable for life.

• Rehabilitation periods for non-catastrophic injures will be cut in half from 10 years of coverage to a meager 5 years. It is only payable  as long as you remain medically eligible. Non-catastrophic injuries. Medical and Rehabilitation benefits for non-catastrophic injuries  was $100,000. After June 1st 2016 $72,000 and $100,000 options will be eliminated.

Read your policy carefully and make sure that you opt in for the coverage that is important to you. If you have questions, you can call your insurer directly and ask for clarification on what us or is not covered under the basic policy.

Mandatory Coverage Is Not Enough When You and Your Loved Ones Are Most Vulnerable
Mandatory auto insurance does not sufficiently cover accident victims in the face of unthinkable tragedy when they are most vulnerable.

The High Cost Of Vulnerability
There is a huge difference between the benefits provided by the basic policy and the amount required for care and rehabilitation for traumatic brain injuries and catastrophic injuries. The costs are staggering and too high for most families to consider without extra insurance coverage.

Accident benefits are responsible for approximately 33 percent of the money paid out by insurance companies.

How To Protect Yourself
There are many insurance options you can choose from. However, most of us feel like we are in murky waters when it comes to understanding the legal terms on insurance policies.

FSCO offers a simple glossary of terms, for greater clarification. https://www.fsco.gov.on.ca/en/auto/brochures/Pages/what-the-coverages-mean-glossary.aspx

Look over the options available, on the glossary list, or compare your last policy to the new one to determine what is best for you and your family. Keep in mind that if you have a business your requirements will be different from your personal insurance needs.

Its Up To You

• Educate yourself
• Find out what coverage you have
• Decide what coverage you need

See your insurance agent and go over your policy coverage. Make the additions to need to protect yourself and your loved ones.

Have peace of mind knowing you will have the insurance coverage you need for yourself and your family should you ever need it. Hopefully you never will.

Make an appointment today and go before the June 1st changes come into effect.