What you need to know about changes coming to Ontario auto insurance
Change. We may like it or we may hate it, but throughout life it's inevitable. Very rarely (even despite our best efforts) do things stay the same. Sometimes change is for the better and sometimes it's not. Sometimes change is initiated by us and other times it not.
If you live in Ontario there have already been some changes to your auto insurance coverage. You probably heard about the ON auto insurance discount for winter tires. If you change your four season or summer tires to winter tires, contact your insurance company because you are eligible for a mandatory discount on your car insurance. As of June 1, 2016 there are more changes coming to Ontario auto insurance – and they aren’t all bad.
Here are four changes coming to your car insurance if you live in Ontario:
Discount if you pay monthly
Currently only clients who pay their full annual premium upfront are entitled to a discount on their auto insurance. This is changing. There are administration fees involved for companies to process several payments if you choose to pay for your car insurance monthly, and the insurance company passes those costs off to the client.
As of June 1, 2016, if you pay for your auto insurance via monthly installments you too will probably see a discount in your costs.
If you have an accident your ON auto insurance premiums may not increase
This was not the case in the past. In fact, many people probably didn't claim minor scrapes and damages to their vehicles because they didn't want their premiums to increase. This is no longer the case. Auto insurance companies are willing to look the other way when it comes to minor accidents that happen after June 1, 2016.
If you're in an accident you can take full responsibility without it affecting your insurance costs. There are four minor catches: the injuries and damages cannot exceed $2,000; you as the driver have to pay for all damages; the other driver can't file a claim with their insurance company; and you're only allowed one of these "blind eye" minor accidents once every three years. Even with the new policy, it's best not to make it a habit.
Accident benefits are changing
It's especially important to read the fine print when it comes to the benefits you receive if you're injured from a car accident. These benefits vary depending on the severity of your injury, and can include things such as doctor bills, appointments with a specialist and hiring additional help around the house.
These benefits, along with the allowable expenses are changing. If you're not happy with the coverage your insurance company provides, it may be time to start shopping around for new car insurance.
If you have comprehensive coverage the deductible is increasing
Comprehensive auto insurance coverage is not mandatory in Ontario. Because it’s completely optional, this change doesn't apply to everyone. However, the deductible for comprehensive auto insurance in Ontario will be increasing from $300 to $500. This isn't a huge change for drivers because it means more money is coming out of your pocket if you file an auto insurance claim.
Pay attention to your insurance policy if you drive in Ontario. You can get more information about ON auto insurance from the Financial Services Commission of Ontario.