What The 2010 Ontario Auto Insurance Reforms Mean For Your Average Cambridge Driver
The auto insurance industry has lost nearly $390 million selling auto insurance coverage to the drivers of Ontario. It was claimed that the minimum medical coverage of $100,000 that the drivers were required to carry was partially responsible. Insurers were habitually paying out close to the maximum amount in medical and rehabilitation insurance, even for people with fairly minor injuries.
Dwight Duncan, Ontario's Finance Minister, introduced 41 changes to auto insurance rules, with many of the rules expected to bring profitability to the industry. The biggest change is the reduction in the minimum basic medical and rehabilitation cover from $100,000 to $50,000. Of course, those desiring to purchase more cover will be able to do that. Previously, the attendant care was set at $72,000, now the minimum of that, too, has been lowered to $36,000, with the option of greater cover if one desires.
Previously, drivers had the option of purchasing Ontario car insurance that covered the cost of caring for dependents and the house in case of suffering catastrophic injuries that required medical treatment and rehabilitation. The maximum limit set on this insurance was $100,000. With the rule changes, one can buy insurance for this amount, but have the option to purchase more if they feel they may need it. Whereas, this cover previously applied to catastrophic as well as non-catastrophic injuries, now it only applies for catastrophic injuries.
Before the changes in law, insurance cover for salary replacement allowed for 80 percent of the injured person's salary, to a maximum of $400 each week. However, the new law reduces the basic cover to 70 percent of the purchaser's salary, with the option to purchase sufficient cover for $600, $800 or $1,000 per week. The really good news for Cambridge drivers is that in the past every time someone was involved in an accident their premiums increased. With the passage of new laws, if an individual is 25 percent or less at fault, the cost of their premiums will not go up.
Also, before the new laws came into effect, auto insurance companies frequently used potential clients' credit scores to determine how much of a risk they were. The customers who posed to be more risky had to pay more for their insurance, while those with higher credit scores paid less. The new laws forbid insurance companies from using credit scores while providing quotes or requesting a credit check when a customer is filling out an application for insurance or having a policy renewed.
Paying deductibles was unheard of for property damage insurance before the reforms. With the new changes, auto insurance policyholders can pay deductibles of $300 to $500 towards the repair of a vehicle after a collision. Since the policyholder takes part in the risk with the insurance provider, their premiums are reduced accordingly by the insurer.
The new insurance laws are highly beneficial for Cambridge car insurance costs. They provide the drivers with more choices, thus making it more cost effective for them, while giving the industry some benefits so they can earn a profit.
Dwight Duncan, Ontario's Finance Minister, introduced 41 changes to auto insurance rules, with many of the rules expected to bring profitability to the industry. The biggest change is the reduction in the minimum basic medical and rehabilitation cover from $100,000 to $50,000. Of course, those desiring to purchase more cover will be able to do that. Previously, the attendant care was set at $72,000, now the minimum of that, too, has been lowered to $36,000, with the option of greater cover if one desires.
Previously, drivers had the option of purchasing Ontario car insurance that covered the cost of caring for dependents and the house in case of suffering catastrophic injuries that required medical treatment and rehabilitation. The maximum limit set on this insurance was $100,000. With the rule changes, one can buy insurance for this amount, but have the option to purchase more if they feel they may need it. Whereas, this cover previously applied to catastrophic as well as non-catastrophic injuries, now it only applies for catastrophic injuries.
Before the changes in law, insurance cover for salary replacement allowed for 80 percent of the injured person's salary, to a maximum of $400 each week. However, the new law reduces the basic cover to 70 percent of the purchaser's salary, with the option to purchase sufficient cover for $600, $800 or $1,000 per week. The really good news for Cambridge drivers is that in the past every time someone was involved in an accident their premiums increased. With the passage of new laws, if an individual is 25 percent or less at fault, the cost of their premiums will not go up.
Also, before the new laws came into effect, auto insurance companies frequently used potential clients' credit scores to determine how much of a risk they were. The customers who posed to be more risky had to pay more for their insurance, while those with higher credit scores paid less. The new laws forbid insurance companies from using credit scores while providing quotes or requesting a credit check when a customer is filling out an application for insurance or having a policy renewed.
Paying deductibles was unheard of for property damage insurance before the reforms. With the new changes, auto insurance policyholders can pay deductibles of $300 to $500 towards the repair of a vehicle after a collision. Since the policyholder takes part in the risk with the insurance provider, their premiums are reduced accordingly by the insurer.
The new insurance laws are highly beneficial for Cambridge car insurance costs. They provide the drivers with more choices, thus making it more cost effective for them, while giving the industry some benefits so they can earn a profit.
About the Author:
Jessica Atlass is a freelance writer with a passion for saving money. Cambridge residents have been hit hard by recent changes in the Canadian auto industry, and economic turmoil keeps us lean and thrifty.