Auto Insurance is Changing as of June 1st 2016

Medical Rehabilitation and Attendant Care Benefits are being reduced as of June 1 2016

To help stabilize rates, the Ontario government has implemented changes to auto insurance effective June 1, 2016.  Several measures are aimed at reducing fraud and abuse of the system which increase premiums.

Medical Rehabilitation benefits are for the payment for medical expenses not covered by OHIP such as prescription drugs, medical assessments, mobility devices such as wheelchairs and crutches, physiotherapy, chiropractic, occupational therapy, massage therapy if you have been injured in a car accident. Attendant Care Benefits are for the payment of expenses incurred by you or on your behalf, for your care, provided you have been injured in a car accident. The coverage includes reasonable expenses for services provided by an aide or attendant, or services provided by a long-term care facility including a nursing home, home for the aged or chronic care hospital.

For non-catastrophic injuries (Minor injuries such as sprains and whiplash and serious injuries such as broken bones and sever strains) prior to June 1 2016 there is a limit of $50,000 for Medical, Rehabilitation and a limit of $36,000 for Attendant Care.   After June 1, 2016 for non catastrophic injuries the amount of coverage for Medical, Rehabilitation and Attendant Care is a combined total of $65,000.    This a reduction of $21,000.   Your current limits will continue to apply until your policy renews after June 1, 2016.

For catastrophic injuries (loss of a limb, para/quadraplegia) prior to June 1 2016 there is a limit of $1,000,000 for Medical, Rehabilitation and an additional limit of $1,000,000 for Attendant Care.  After June 1, 2016 for catastrophic injuries there is a combined limit of $1,000,000 in total for Medical, Rehabilitation and Attendant Care.  This is a reduction of $1,000,000.

Options to increase the limits:

As of June 1, 2016 you will have the following options for increasing the Medical, Rehabilitation and Attendant Care limits

Option 1: Increase limit to $130,000 for non-catastrophic injuries.

Option 2: Add “all injury” benefit at $1,000,000 for non-catastrophic injuries and $2,000,000 for catastrophic injuries

Option 3: Increase catastrophic injury by $1,000,000 for a total of $2,000,000

Option 4: Option 1 and Option 2 combined

Option 5: Option 2 and Option 3 combined (total amount of coverage for catastrophic injuries at $3,000,000

We strongly recommend that you at least increase the limit $1,000,000 for non-catastrophic injuries and $2,000,000 for catastrophic injuries (option 2) as the new reduced limits may not be adequate in the event of a serious injury or catastrophic injury.  The average cost is only $60-$80/yr to increase the limits to these amounts.

These changes to your limits do not take effect until your policy renews.   Your current limits will continue to apply until your policy renews after June 1, 2016.

For more details give us a call at 519-268-3535 or click here: Auto reform digital brochure 2016