On July 1, big changes for millions of auto insurance policy holders across Ontario take effect, but a lot of drivers still have questions about how it impacts them.
“I have not heard anything about this,” said Megan Sousa, who has an auto insurance policy.
Sousa was unaware certain benefits for accident victims, whether the driver’s fault or not, which were mandatory under Ontario insurance laws, will soon become optional for existing policy holders.
It’s a long list including:
Come July 1, only medical, rehab and attendant care will remain mandatory on all polices but the rest of the list becomes optional.
The big impact is to brand new policies, which will include only the minimum mandatory benefits with the option to add the others.
If you’re policy is renewing, all benefits will stay the same unless you opt-out.
“The choice is now up to the consumer,” said Aaron Blackwood, senior sales manager for Mitch Insurance.
He says opting out of certain benefits will save consumers on premiums they pay, how much exactly depends on several factors.
“It really does depend on the operator,” Blackwood said. “We’re seeing anywhere between $7 to $20 a month in total savings for stripping down what would provide thousands, if not hundreds of thousands of dollars in protection after a serious car accident.”
Which is why Blackwood says agents and brokers — now trying to walk through the policy changes with customers —are cautioning them to consider their options and the consequences of declining the previously required benefits.
“People really need to be aware of what they’re losing if they opt-out,” he said. “It’s a lot of protection to lose, just to save a few bucks per month.”
The reforms also change who receives benefits when an accident occurs. Come July 1, only the insured named on the policy, their spouse, dependents and drivers listed on the policy can access the driver’s benefits. Any other passenger that does not meet those requirements will only receive the mandatory benefits (medical, rehabilitation and attendant care).
“There is a lot to unpack when it comes to these changes,” Blackwood said.
Which is why, he says, policy holders should reach out to their insurance provider to understand the reforms.
“It’s really important that we approach this with the motorist in mind and how to make sure that they’re in the best position at the time of a loss,” he said.
“We’re going to present you what was previously the standard, provide you pricing and then we can start breaking down what those coverages are, and what if any you want to remove or increase.”
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