The Basic Need to Know Changes to Auto Insurance

The Financial Services Commission of Ontario (FSCO) is the provincial regulator of insurances and they have introduced reforms to auto insurance with some reduced benefits and extra charge options that have come into effect September 1st, 2010. You may have already received some information in the mail from your current insurer. If you are not aware of the changes, here are the basics to review.

Through reduction of claims cost, the new changes are an attempt to stabilize the current trend of increasing premiums in the long term, expedite the medical assessment process as part of an accident benefit plan and to provide you with more options and flexibility to purchase coverage that best suits your needs and budget. These changes will affect drivers buying a new policy or renewing an existing policy as of September 1, 2010.

What questions should I be asking my broker?

· What am I paying for?
· How much of my benefits have been reduced from before?
· How much did those reductions save me?
· How much does it cost to restore my benefits?

Other than reduced benefits and extra charge options, here are just a few other key changes that were also made:

· Prohibiting use of credit scores in giving quotations for your auto insurance rates.
· Accidents where you are 25 per cent or less at-fault will no longer affect your premium.
· If you have 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.

For more details on the changes made to automobile insurance in Ontario visit the Financial Services Commission of Ontario website and speak to your insurance professional.

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