2016 Ontario Auto Insurance Reform – Adjustments to your Accident Benefits coverage

Effective June 1st 2016

These changes are very important to understand, if you have any questions at all please do not hesitate to contact our office at 905-775-5411

As of June 1st 2016, the Financial Services Commission of Ontario will be implementing changes to your Ontario Auto Insurance with the intended goal of meeting the Ontario governments’ promised rate reduction targets. Though these changes will provide you with more choice and control over your auto premium, it is important you understand how these changes will affect your auto policy.

Most Significant Changes

On June 1st, 2016 if you are buying a new policy or renewing an existing one, you should be aware of these THREE significant changes to your auto insurance:

BenefitCurrent PolicyNew PolicyYou Can Choose
Medical and Rehabilitation for non-catastrophic injuries$50,000These benefits have been combined and reduced to $65,000
Increase the benefit to $130,000
Attendant Care for non-catastrophic injuries$36,000
Medical and Rehabilitation for catastrophic injuries$1,000,000These benefits have been combined and reduced to $1,000,000 totalAn additional $1,000,000
for a total of $2,000,000 for
catastrophic injuries
Attendant Care for catastrophic injuries$1,000,000
Medical, Rehabilitation and Attendant Care, all injuriesNot ApplicableNot ApplicableIncrease the combined non-catastrophic benefit to $1,000,000 and the combined catastrophic benefit to $2,000,000

Some important things to remember about these choices:

  • If you have previously chosen to purchase these optional benefits, check your policy – they may have been changed to reflect amounts available in the new options
  • Medical, Rehabilitation and Attendant Care benefits for minor injuries are fixed at a maximum limit of $3,500
  • If you purchase both the additional Medical, Rehabilitation and Attendant Care benefit for catastrophic injuries and for all injuries, the total eligible benefit amount for a catastrophic impairment would be $3,000,000

Other Optional Benefits

Benefit/CoverageCurrent PolicyNew PolicyYou Can Choose
Income Replacement Benefit70 per cent of Gross income up to $400 per weekNo ChangeTo increase the weekly Limit to $600,$800 or $1,000
Caregiver BenefitAvailable only for catastrophic injuries: Up to $250 per week for the first dependant plus $50 for each additional dependantNo ChangeTo make the same amounts available in current policy for catastrophic injuries available for all injuries
Housekeeping and Home Maintenance ExpensesAvailable only for catastrophic injuries: Up to $100 per weekNo Change$50,000 lump sum to an eligible spouse; $20,000 lump sum to each dependant; maximum $8,000 funeral benefits
Dependant Care BenefitNot ProvidedNot ProvidedTo purchase this benefit and add up to $75 per week for the first dependant and $25 per week for each additional dependant to a maximum of $150 per week.
Indexation BenefitNot ProvidedNot ProvidedTo add an annual adjustment for inflation for many benefits according to the Consumer Price Index for Canada to your policy
Third Party Liability$200,000 minimum for claims as a result of
lawsuits against you
No ChangeOptions exist to increase the minimum amount
Tort Deductible$36,905.40 deductible for court awarded compensation for pain and suffering (Jan 1-Dec31, 2016)No ChangeReduce deductible by $10,000 regardless of annual indexation percentage increases

What Else Is New?

Other key changes include:

Minor AccidentsInsurers can no longer use a minor at-fault accident that occurs on or after June 1, 2016 meeting certain criteria to increase your premiums.  The criteria include that no payment has been made by any insurer, that there are no injuries, and that damages to each car and property were less than $2,000 per car and were paid by the at-fault driver. This provision is limited to one minor accident every three years.
Interest Rate for Monthly Payment PlanThe maximum interest rate that insurers can charge if you make monthly premium payments has been lowered from 3% to 1.3% for one year policies, with corresponding reductions for shorter terms.
Comprehensive DeductibleThe standard deductible for Comprehensive coverage has been increased from $300 to $500.
Non-Earner BenefitThe six-month waiting period for people who are not working to receive benefits has been reduced to four weeks. Conversely, benefits can now only be received for up to two years after the accident.
Duration of Medical, Rehabilitation and Attendant Care BenefitsFor all claimants except children, the amount of time that you can receive this standard benefit is now five years for non-catastrophic injuries, and it will be paid only as long as you remain medically eligible.

The below attached document is a summary of the amendments only. Please contact our office if you have any questions of how these changes will affect you. You can view the complete list of changes at the Financial Services Commission of Ontario’s website www.fsco.gov.on.ca

2016 Reform Brochure

As always, Lomonte & Collings strives to provide our clients with the care and customer service they deserve.  We understand that everyone’s situation is unique and it is our job to ensure that your coverage matches your individual needs. If you have any questions or concerns, please contact our office right away and one of our insurance professionals will be happy to assist you.

Thank you for choosing Lomonte & Collings.


The Lomonte & Collings Insurance Team