Changes are coming to Ontario auto insurance rates
The Financial Services Commission of Ontario has released new information detailing how the auto insurance industry will change in the coming couple of months.
The changes, which are due to come into effect June 1, include a pretty significant decrease in coverage benefit amounts as well as generally lower rates from Ontario auto insurers. In terms of benefit cuts all policies will continue to include the standard coverage for third party liability, uninsured automobile, direct compensation-property damage, and accident benefits. However coverage of medical and rehabilitation costs and attendant care for non-catastrophic injuries will go from having $50,000 and $36,000 of coverage respectively to a combined $65,000 benefit instead with the option to double that.
Similarly, coverage for catastrophic injuries will go from $1,000,000 each to a combined $1,000,000 with the option to double.
Other optional benefits have changes that you can choose to take or leave. The main thing with the new rules seems to be a focus on choice. The reduction in coverage amounts may be the reason why premiums are going lower in June. The average approved rate change in the province will be -3.07%. A much bigger drop compared to the -0.15% change from the end of last year.
The approved average rate change doesn’t guarantee that your rate will change by the same percentage, only that the average change across all of the company’s policies will be that percentage. However, it’s a good sign that prices are generally going down. In Ontario, where auto insurance premiums are some of the highest in the country any decrease is a good decrease.