Car owners in Ontario take note: as of June 1, 2016, changes to your auto insurance are now in effect. The majority of changes are taking place within the Accident Benefits portion of your policy, but there are a few other items to keep in mind.
New or renewed policies from this date forward will reflect the changes. For those who purchased or renewed a policy prior to this date, the changes will come into effect the next time you switch insurers or renew.
The maximum interest rate that can be charged to a policyholder paying monthly premiums has been lowered from 3% to 1.3% for a one-year policy. Similar reductions are in place for shorter term policies.
Collisions that are minor in nature may no longer alter your rates under the following conditions:
There are also some changes to the total coverage amount for medical and rehabilitation “standard” accident benefit costs, especially when it comes to enhanced optional benefits.
The standard deductible for comprehensive coverage – an add-on to your policy – has been increased from $300 to $500. Some policy holders can choose to keep their deductible set at $300, so check with your provider to confirm.
For more information on changes to and updates on this auto reform, visit the FSCO website or the Insurance Bureau of Canada.
With all these changes in the air, this is also a good time to reassess your coverage and make sure you aren’t overpaying for your insurance policy. Why not check Rates.ca to help find you the best coverage for the lowest rate? It’s easy, secure and free and can save you hundreds of dollars.
Related Read: Cheap(er) Car Insurance: How to Save Money