Insuranceland Inc. - Auto Reform 2010

Insuranceland is an award winning provider of personalized insurance solutions.

Auto Reform 2010

Effective September 1, 2010 the Ontario auto insurance policy changed.

After completing a 5 year review of the previous legislation, the Finacial Services Commission of Ontario, legislated changes to the Ontario Insurance Act.

These changes effect all Ontario Automobile Insurance Policy holders. The major change involved the Accident Benefits Coverage on Ontario Auto Policies. The changes drastically reduse coverage in the event of an auto accident when injuries occur.

With the new Standard Auto Policy in effect, it is time to speak with your broker on your options. Don't be under insured.

Click here for more information on the Auto Reform 2010.

Auto Reform 2010

I need to speak to you in this letter about your auto insurance renewal. On September 1, 2010 the provincial government made changes to the standard Ontario Auto Policy. These changes affect you.

The main changes hinges on three words. The words are Minor, catastrophic and non catastrophic. Before I get into these words let me tell you a story of what is on going with one of our sales staff's wife.

She was in an accident where someone went through a stop sign hitting her car in the passenger door. Both cars left the road and went into fields. The other lady died, Laurel has a broken arm and foot. The arm healed but the re-construction of the foot has not gone well. The screws and plates had to be removed after several months, as infection set in and the foot has not healed.

To accommodate Laurel she needs a hospital bed in her home, ramps were build to allow access and a bathroom changed. She required considerable help each day, which was provided by professionals as well as her husband. He has not been able to work since the accident.

Now back to the words. Laurels injuries fall into "non-catastrophic" so her medical coverage is limited to $100,000.00. That amount has now been spent and she is not able to use her foot yet but the coverage has ended.

Now, so that you can save some money the coverage for non-catastrophic loss is being reduced from $100,000.00 to $50,000.00. Minor injuries, we do not know what that means just yet, are limited to $3,500.00 and there is no buy ups. Catastrophic injuries remain the same at $1,000,000.00.

Your policy has the provision that you may increase the Medical and Rehabilitation coverage to $100,000.00 or still better $1,100,000.00.

I am going to go over the other changes but they don't have the impact of the medical. I am urging you to increase your Medical and Rehab coverage to $1,100,000.00 on this even if you don't change any other coverage's.

Insurance is like a parachute. If you don't have it when you need it you may never need it again.

The caregiver and housekeeping coverage will only apply to Catastrophic Injuries. You can purchase this coverage back. John would have been in deeper trouble looking after Laurel if he didn't have this as well.

Income replacement has changed from 80% to 70% coverage of income. There have always been 4 limits of the maximum benefit but everyone opted for the $400.00 a week limit. Limits of $600.00, $800.00 and $1,000.00 are also available, so if you weekly income is over $400.00 and you have no other replacement coverage please have a look at this.

Dependent coverage in now available as are increased limits on Death and Funeral costs and an indexing benefit to adjust for inflation.

If you find yourself suing someone for damages and you are successful the new regulations imposes deductibles on your settlement. You can buy an endorsement to your policy to pay for these deductibles.

The insurance companies are now offering higher limits of liability from the old limit of $2,000,000.00 up to $5,000,000.00. These limits, which are available, may better served by an umbrella policy.

If you have any questions or comments please give us a call.