Consumer education urged as auto reforms take effect

Ontario’s auto insurance reforms took effect on Sept. 1, and government and insurance industry groups are encouraging consumers to educate themselves about the new regime.
The reforms change the standard, mandatory auto insurance benefits package so that medical, rehabilitation and attendant care benefits for non-catastrophic injuries are now reduced from $100,000 to $50,000. Consumers have the option to buy back up to $100,000 in coverage or higher coverage limits of up to $1.1 million.
Benefits for caregiving, housekeeping and home maintenance have been converted from mandatory to optional benefits.
“There are many insurance companies competing on cost and service in Ontario, so I encourage drivers to do their homework and find coverage that provides them with adequate protection at a reasonable price,” Ontario Finance Minister Dwight Duncan said in announcing the reforms.
The options now available under the new rules make it that much more important for consumers to learn about their auto policies, said Ralph Palumbo, Insurance Bureau of Canada’s vice president of Ontario.
“Because consumers now have more choice, it is important that they speak with their insurance representatives before making any decisions concerning their auto insurance,” he said.
The broker force remains confident that five months of preparation, education and organization will help them to guide consumers through the reforms, the Insurance Brokers Association of Ontario (IBAO) said in a release.
“It is important that Ontarians are made aware of these new auto insurance reforms in order to best understand how their coverages will be affected,” said Randy Carroll, IBAO’s CEO. “Brokers have been educating themselves for months on how to best advise their customers on coverages to suit their lifestyles.”