The most radical changes to vehicle insurance in a decade took effect in Ontario September 1st – and most motorists are unaware.
For the first time ever in this province’s history, government-mandated changes have reduced coverage on every auto policy.
In a recent Leger Marketing survey commissioned by RSA Canada, only 2% of those surveyed were confident they understood the changes, and their impact on coverage and pricing.
And nearly 70% were unaware or understood very little about how the changes affect their ability to recover from their auto policies, when injured in a vehicle accident.
The changes:
- new limitations on injury assessments, and a $3500 maximum payout for medical and rehab costs for minor injuries for all accidents occurring September 1st onward.
- other changes including reductions in medical benefits and rehab for more extensive injuries kick in for each policyholder on the first policy renewal after September 1, 2010.
- the most recent government-approved industry rates (2010-2nd quarter) were level or slightly reduced; however, almost every insurer was granted rate increases months earlier, so most policy renewals will reflect higher premiums – for less coverage.
Every policyholder has been advised by mail prior to July 1st that changes were coming and that coverage “buy-ups” were available. Prudent brokers have been explaining options and dispensing advice to their clients – but most policyholders remain in the dark, oblivious to the opportunity to review and enhance their healthcare coverage under the auto policy.
Which brings to mind a quotation: “The greatest ignorance is to reject something you know nothing about” (Jackson Brown, Jr).
Tags: advice, Automobile, broker, coverage, insurance, ontario, premium, risk
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M.R.
September 8, 2010 at 12:32 pm
I am not surprised regarding the percentage’s. How many of us really read “everything” that comes in the mail!
HC
September 8, 2010 at 1:37 pm
Those who are not understanding their own policy need to ask their brokers questions and read any available material.
I think that quote rings true in this scenario.
cd
September 8, 2010 at 4:16 pm
It is crutial that Brokers persist, at every opportunity, to fully explain the changes and buy up options available in the Standard Accident Benefits coverage when speaking to their clients.
GK
September 9, 2010 at 9:14 am
I’m glade to see Knox Insurance is going the extra mile to educate the public on these important changes to their auto insurance
HG
September 9, 2010 at 10:03 am
As broker we explain the limitations under the new accident benefit changes but the bottom line is the public is not willing to pay more especially when they see a $300 increase on their renewal and it will cost them more to up the coverage to what they had. Their comment is that they would rather take their chances. All they seem to be concern about is their liability limit has not change.
SD
September 10, 2010 at 11:14 am
Even with all the pamplets, brochures and letters sent to the clients it is unbelievable how many people still are unaware of the changes made with the September 1st auto insurance reform.
gc
September 14, 2010 at 11:59 am
Consumers need to call their insurance broker for advice if they do not understand the changes in automobile insurance.
Pat B
September 15, 2010 at 12:53 pm
As the article says, “The greatest ignorance is to reject something you know nothing about”.
Thanks for keeping me informed!
Anton T
September 15, 2010 at 7:34 pm
This is good to know! I’ll be conducting my due diligence regarding this soon. Thanks for the information.