I received a notice in the mail that the Financial Services Commission of Ontario (FSCO) is making changes to auto insurance in Ontario (effective for policies purchased or renewed after Sept. 1). It refers readers to the Insurance Bureau of Canada websitefor details on the changes.
Why the changes? The cost of claims for minor injuries, like sprains and whiplash, have gone up substantially and FSCO wants to make coverage changes to keep costs down. It also wants to generate extra revenues by offering new options to purchase additional coverage.
Cuts/changes to the standard package include:
for non-catastrophic injuries, there is a reduction by half of the $100,000 coverage for medical and rehabilitation benefits and $72,000 coverage for attendant care benefits
for housekeeping and home maintenance expenses, coverage of up to $100 per week is restricted to catastrophic injuries
for income replacement benefits, coverage is changed from 80% of net income up to $400 per week to 70% of gross income up to $400 per week
Options to purchase extra coverage include:
weekly limit for income replacement benefits can be increased by up to $1,000
doubling in death and funeral benefits to $50,000 to an eligible spouse and $20,000 for each dependent
Here is a table of all the changes and new options.
One insurance company offers a websitefor helping drivers choose between the new options.