The Ontario government is taking measures to reduce auto insurance rates further for Ontario drivers, but there will be some changes to your auto insurance coverage.

In 2013, the Liberal government vowed to reduce auto insurance rates in Ontario by 15% by August 2015. While the government admits rates are not yet where they want them to be, they have decreased an average of 7% since this plan was introduced.

And now, at the latest Budget announcement, additional measures have been taken to reduce the cost of auto insurance to consumers.

The government has proposed to:

  • Establish a $300 standard deductible for comprehensive coverage, down from $500
  • Lower the maximum monthly interest rate on auto insurance premium payments from 3% to 1.3%
  • Prohibit premium increases for minor at-fault accidents meeting certain criteria, such as no reported injuries
  • Mandating that all insurers offer a discount to drivers who install winter tires on their vehicles. The amount has not been disclosed

Changes to Basic Auto Insurance Benefits

With the announcement also came a reduction in basic auto insurance benefits. Medical and rehabilitation benefits have been combined into a single benefit of $65,000, previously totalling $80,000. However, drivers can still get increased coverage up to $1 million.

These benefits will also be combined in the case of catastrophic accidents. Coverage will be reduced from $2 million to a single benefit totalling $1 million. Again, drivers can buy additional coverage up to $2 million.

The definition for catastrophic impairment will also be updated to reflect contemporary medical and scientific knowledge. Details of this definition have not yet been announced.

Now What? 

The Ontario government announced they intent to be transparent with consumers by ensuring the public is aware of the changes as they become implemented.

Why wait to find out if you could be getting a better rate for your auto insurance. Compare rates today at to see if you could save money today.


The RATESDOTCA editorial team are experienced writers focused on sharing stories and bringing you the latest news in insurance and personal finance. Our goal is to provide Canadians with the information and resources they need to make better insurance and financial decisions.

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