Ontario Auto Insurance is Changing
In 2014, the provincial government passed the Fighting Fraud and Reducing Automobile Insurance Rates Act to fight fraud and abuse in the system. In 2015, changes to Ontario’s auto insurance product were outlined in the Ontario Budget. Measures were put in place not only to combat fraud, but to provide greater choice for consumers, and help achieve the Ontario government’s promised rate reduction targets.
In brief, new regulations include lower accident benefit limits in standard policies, new options to increase coverage, new procedures for payment and a mandatory winter tire discount offered by insurance companies across Ontario.
Most changes come into effect June 1, 2016. (The winter tire discount was already put in place last month).
Watch for awareness mailers from your insurance company this March, and make sure to talk to your insurance broker to ensure you have the best possible coverage based on your lifestyle.
Next month we’ll outline some questions you should consider when deciding on what you really need.