Ontario's 2010 auto insurance reforms: What did change?

Ontario's 2010 auto insurance reforms, came into effect on September 1, and gave Ontario drivers more control over their car insurance coverage and premiums. The vast majority of the reforms affected the Accident Benefits portion of your coverage.

Accident Benefits

Accident Benefits is actually a robust package of benefits and coverages. With the implementation of Ontario's auto insurance reforms, 8 components of the package were changed to offer consumers an opportunity to customize the package they purchase.

1. Medical, Rehabilitation and Attendant Care: for non-catastrophic injuries
2. Medical, Rehabilitation and Attendant Care: for catastrophic injuries
3. Caregiver benefits
4. Housekeeping and Home Maintenance expenses
5. Income Replacement
6. Dependent Care
7. Death and Funeral benefits
8. Indexation

1. Medical, rehabilitation and attendant Care: for non-catastrophic injuries

For medical and rehabilitation expenses (like physiotherapy, chiropractic treatment and dental expenses) the standard coverage is $50,000. Keep in mind, if your injury is considered minor, no matter what level of coverage your choose, your medical and rehabilitation accident benefits will be limited to $3,500.

• Your choices: You can increase this limit to $100,000 or $1,100,000.

For attendant care (say you needed to hire someone to help you in the home as a result of injuries from an accident) coverage is $36,000.

• Your choices: You can increase this limit to $72,000 or $1,072,000.

2. Medical, rehabilitation and attendant care: for catastrophic* injuries

For catastrophic injuries, the standard coverage for medical and rehabilitation expenses is $1,000,000.

• Your choices: You can opt to increase the limit by $1,000,000.

For attendant care, coverage is $1,000,000.

• Your choices: You can opt to increase the limit by $1,000,000.

*Examples of catastrophic injuries include paraplegia, quadriplegia, permanent loss (or loss of use) of an arm or leg, and total vision loss in both eyes.

3. Caregiver benefit

If you provide full-time care to dependants, and are disabled as the result of a car accident, the caregiver benefits portion of your policy provides $250 per week for one dependant, plus $50 per week for each additional dependant. This is available to only those with catastrophic injuries.

• Your choices: You can opt to extend this coverage so that it applies to all injuries, not just those deemed catastrophic.

4. Housekeeping and home maintenance

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.

• Your choices: You can opt to extend this coverage so that it applies to all injuries, not just those deemed catastrophic.

5. Income replacement

If you're unable to return to work and earn a living after a car accident, the income replacement portion of your Accident Benefits provides 70 per cent of your gross income up to a maximum of $400 per week.

• Your choices: You can opt to increase your weekly maximum to $600, $800 or $1,000 per week.

6. Dependent care

This is an optional benefit that, if taken, will help to offset the cost of childcare expenses in the event you are in an accident.

• Your choices: You can opt to include this into your Accident Benefits package. The benefit offers up to $75 per week for the first dependant and $25 per week for each additional dependent. There is a $150 weekly maximum.

7. Death and Funeral

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 dependant, and a maximum of $6,000 for funeral expenses.

• Your choices: You can opt to increase the amount going to your spouse to $50,000; $20,000 to each dependent child, and $8,000 towards funeral expenses.

8. Indexation

This is an optional benefit that, if taken, will annually adjust the amounts available when eligible to receive income replacement, non-earner, caregiver, attendant care and medical and rehabilitation benefits.

• Your choices: You can opt to include this into your Accident Benefits package. The benefit annually adjusts the amounts available according to the Canadian Consumer Price Index.

In addition to changes to the Accident Benefits package, there were other important non-Accident Benefts related changes. Some notable examples include:

Third Party Liability deductible options
Third-party liability offers coverage to policyholders who are sued and held legally liable for injuring or killing someone or damaging his or her property. If you are sued, there is a deductible; a person can now opt for a $20,000 deductible ($10,000 for claims from family members).

• Your choices: You can choose a deductible of $20,000 ($10,000 for claims from family members) or $30,000 ($15,000 for claims from family members.)

Credit information
Have you ever been asked to consent to the collection and use of your credit information when asking for an auto insurance quote? This is no longer allowed. Insurers are prohibited from requiring you to consent to the collection and use of your credit information before providing you an auto insurance quote or renewing your auto insurance policy.

Insurers are also prohibited from using your credit information to treat you differently than anyone else when they provide you with an auto insurance quote, or process your application for coverage (whether it is a new policy or renewal.)

At-fault accidents
If you are in an accident, and it is determined that you are 25 per cent or less at fault for the accident, then this accident cannot be used against you when determining your auto insurance premiums.

Kanetix's reform centre: Ontario's 2010 auto insurance reforms

• A background
• What didn't change?
• Frequently asked questions