Auto Insurance Changes now in Effect in Ontario

Changes to Auto Insurance in Ontario

Written by Andrea Coreas

As of June 1st 2016, changes have been made to your auto insurance. Most of them are minor in nature and take place within the Accident Benefits portion of your policy. This will have an impact on your insurance when you renew or buy into a new policy.

Here’s what you can expect going forward:

If you are involved in a minor collision, your premium will not change if:

•    The collision happened on June 1, 2016 or after that date
•    There are no injuries and there is less than $2,000 worth of damage per vehicle
•    None of the people involved submits an insurance claim for payment
•    As the driver at fault, you pay for all damages
Disclaimer: this can apply to you as long as you only have one minor accident every three years.

Monthly premium decrease:

The maximum interest rate that a policyholder must pay for an annual policy has now been reduced from 3.0 to 1.3 per cent. Similar reductions are in place for shorter term policies.

Comprehensive coverage:

If you have comprehensive coverage on your policy, the deductible has increased from $300 to $500. But some policyholders have the option to keep their deductible set at $300.

Accident Benefits coverage:

•    Benefits for medical, rehabilitation and attendant care for non-catastrophic injuries have been combined and reduced to a total of $65,000 but can be increased to $130,000.
•    Benefits for medical, rehabilitation and attendant care for catastrophic injuries are combined and reduced to a total of $1,000,000 but can be increased to $2,000,000.
•    No changes have been made to caregiver benefits or housekeeping and home maintenance expenses for catastrophic injuries, but you can choose to extend these benefits to all injuries.
•    No changes have been made to income replacement benefits but there’s now the option to up the amount to $600, $800 or $1,000 per week.
•    No changes have been made to dependant care benefits but you now have the option to add up to $75 per week for the first dependant and $25 per week for each additional dependant, up to a limit of $150 per week.
•    No changes have been made to death and funeral benefits but the option to increase the benefit so that souses receive $50,000, and each dependant can receive $20,000 and up to $8,000 for funeral expenses.

For more information on any of the auto insurance changes or new options available, visit the FSCO website or the Insurance Bureau of Canada. To find out more about how your car insurance rates are calculated, visit our Car Insurance 101 page.

If these changes don’t work for you, it might be time to switch providers! Compare insurance rates here at and find the best option for you and your loved ones.

Related Topics

Car Insurance 101 / Insurance / Insurance News / RSM News

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>