Drivers in Ontario are facing a significant change to their auto insurance, as a set of accident benefits that have long been mandatory are set to become optional. The change takes effect on July 1, after which motorists will be able to choose whether to keep or drop several coverages that until now were automatically included in every policy.
Not everything is changing. Standard medical and rehabilitation benefits will remain part of the standard coverage, meaning drivers will still be covered for those core costs after a collision. That portion of the policy is staying the same regardless of the choices a driver makes about the rest of their accident benefits.
Several benefits that were once mandatory are the ones moving into the optional column. Among them are death and funeral expenses, caregiver expenses and income replacement. From July 1, each driver will decide whether to keep those protections in their policy or remove them entirely.
For people who already hold a policy, the shift does not automatically change the price. According to insurance broker Aaron Blackwood, a current policyholder who keeps the same benefits would not see a difference in what they are paying. The savings only come into play if a driver actively removes coverage from their plan.
If motorists do choose to strip out some of the once-mandatory benefits, insurers could lower their premiums. Blackwood estimated the reduction at anywhere from 7 to 20 dollars a month in total savings, a relatively modest amount when weighed against the protections being given up in exchange.
Blackwood cautioned drivers to think carefully before trimming their coverage, warning that there is a lot of protection to lose for the sake of a couple of dollars. His recommendation was straightforward, advising motorists to maintain what were previously the standard accident benefits rather than dropping them to shave a small amount off their monthly bill.