1 - 34 Harvard Road
Effective June 1st of this year (2016) the Ontario Government is rolling out some new changes to automobile insurance within the province. The majority of these changes will have an effect on the accident/injury benefits that drivers receive from their auto policies.
NEW effective June 1, 2016 - These benefits have been combined and reduced to $65,000 total
You can choose to Increase the benefit to $130,000 total
NEW effective June 1, 2016 - These benefits have been combined and reduced to $1,000,000 total
You can choose an additional $1,000,000 for a total of $2,000,000 for catastrophic injuries
You can choose to increase the combined non-catastrophic benefit to $1,000,000 and the combined catastrophic benefit to $2,000,000
Are you aware that OHIP won't cover all of your expenses, such as:
Does your employer provide a Group Insurance Plan?
Know what you are covered for. Most employer benefit packages have an annual limit for each year and each visit per practitioner.
*Examples of catastrophic injuries include paraplegia, quadriplegia, permanent loss (of loss of use) of an arm or leg, and total vision loss in both eyes.
All income replacement benefits are based on 70% of your gross weekly income up to $400 per week. If you cannot work as the result of an auto accident, you may be eligible for basic weekly income replacement benefits of up to $400. This benefit commences after one week.
You can choose to increase the weekly limit to $600, $800 or $1,000 per week
If you are off work for a period of time, will the base coverage on your car insurance be an effective supplement to your current income to pay for monthly expenses? DO YOU EARN OVER $30,000 PER YEAR?
If you provide full-time care to dependents, and are disabled as the result of a car accident, the caregiver benefits portion of your policy provides $250 per week for one dependent, plus $50 per week for each additional dependent. This is available to those with catastrophic injuries.
You can choose the above amounts available for all injuries, not just catastrophic injuries
How will you make sure that your expenses are not drained to subsidize care for these individuals in the case of an unexpected car accident?
If, as a result of a car accident, you need to hire someone to help you clean and otherwise upkeep your home, the housekeeping and home maintenance benefits portion of your policy provides up to $100 per week. This is available to only those with catastrophic injuries.
If you had to hire someone to help you care for your home, how would you cover the expenses?
No one likes to think of the worst, but if you die as a result of an automobile accident, the standard amount paid is $25,000 to your eligible spouse, $10,000 for each dependent, and a maximum of $6,000 for funeral expenses.
You can choose $50,000 lump sum to an eligible spouse; $20,000 lump sum to each dependent; maximum $8,000 funeral benefits
This is an optional benefit that, will help to offset the cost of childcare expenses in the event you are in an accident.
You can choose to purchase this benefit and add up to $75 per week for the first dependent and $25 per week for each additional dependent to a maximum of $150 per week
You can choose to add an annual adjustment for inflation for many benefits according to the Consumer Price Index for Canada to your policy
If you were receiving benefits for an extended period of time would you want the amount you receive to keep up with inflation?
Review your insurance policy for your current limit
You can choose to increase the minimum amount
We are seeing lawsuits exceed policy limits
A Tort Deductible is the amount that is deducted from a settlement or court award for pain and suffering. Under the Family Law Act, relatives of an accident victim may sue an at-fault driver for loss of care, guidance and companionship.
You can choose to reduce the deductible by $10,000 regardless of annual indexation percentage increases
Here are a few things to do to make sure you know what you are getting and that you get what you need:
Not yet a part of the Colley pack? Visit us here for a free quote on your car insurance.
Stay informed and stay safe.
Other key changes include:
Exception: An insurer may consider a minor accident that occurs on or after June 1, 2016 if the vehicle was involved in a total of more than one minor accident in the previous three years, and in each accident the driver of that vehicle was at fault.
There are three categories of injury: minor, serious and catastrophic. Categories determine the level of benefits the injured party receives.
Examples: sprains, whiplash. When injuries are deemed minor, medical and rehabilitation benefits are limited to $3,500 regardless of the level of coverage. Claimant's doctor can present "compelling evidence" if higher limits needed.
Examples: broken bones, severe strains. Serious injuries typically disrupt quality of life for a prolonged period of time.
Examples: loss of a limb, paraplegia. Catastrophic injuries result in increased benefits.