What Drivers Need To Know About Auto Insurance Reforms

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Thornhill, ON (May 24, 2016) – With the upcoming changes to auto insurance policies, CAA South Central Ontario (CAA SCO) is reminding drivers to ensure your coverage is right for you and your loved ones.

If you purchase a new policy or renew on or after June 1, 2016, your auto insurance rates may be lowered and accident benefits will be reduced, but you will have the option to choose additional benefits as well as customize your coverage.

These insurance industry reforms are part of the Ontario government’s commitment to reduce insurance rates and incidents of fraud related to auto insurance.

“We are encouraging drivers to review your policy and understand your coverage needs. If you have questions, talk to your insurance advisor about the changes and purchase increased benefits if necessary,” said Carlos Coutinho, Chief Operating Officer, CAA SCO.

What’s Changing

New reforms, as of June 1, 2016, include:

  • Insurance companies will no longer be allowed to use minor at-fault collisions to increase premiums.
  • The maximum interest rate on your monthly insurance payment has been reduced from 3 per cent to 1.3 per cent for one year policies.
  • The 6 month waiting period to receive benefits has been reduced to 4 weeks.
  • The standard comprehensive deductible increases from $300 to $500.
  • Benefits for non-catastrophic medical, rehabilitation and attendant care have been combined and reduced to $65,000. There is an option to increase coverage to $130,000 or $1M.
  • The duration of medical, rehabilitation care for non-catastrophic injuries is now 5 years.
  • Benefits for catastrophic medical, rehabilitation and attendant care have been combined and reduced to a total of $1M. There is a new option to purchase an additional $1M coverage.

For more information, visit the CAA blog.

CAA auto insurance policyholders can contact an insurance representative by phone at 1-877-222-1717.

About CAA South Central Ontario

For over a hundred years, CAA has been helping Canadians stay mobile, safe and protected. CAA South Central Ontario is one of nine auto clubs across Canada providing roadside assistance, automotive care, travel products, insurance services and member savings for more than 1.9 million members.

Follow @CAASCO_News on Twitter for regular updates on wait times, news and other information.

Source: CAA South Central Ontario