Ontario Drivers Could Soon Opt for Less Insurance

Ontario Drivers Could Soon Opt for Less Insurance

Ontario drivers could soon opt for less insurance coverage under reforms proposed in the latest provincial government budget report from this week.

Medical, rehab and attendant care coverage will still be mandatory, the budget says, but all other benefits would become optional. If drivers have access to certain coverages through workplace benefits, for example, they shouldn’t have to pay twice through their auto insurance policy, the Ontario government argued.

“This would provide drivers with an opportunity to lower their premiums by taking advantage of a wider range of coverage options to meet their needs,” the government wrote in this week’s budget report.

The proposed changes also include making auto insurance pay for medical and rehabilitation benefits before drivers submit those costs through their extended health-care plans.

Ontario Drivers Could Soon Opt for Less Insurance, but this won’t necessarily lower rates

Ontario drivers could soon opt for less insurance coverage, but the impending insurance reforms won’t necessarily lower auto insurance rates, Finance Minister Peter Bethlenfalvy noted.

“I don’t think this is where we have any sort of specific numbers in terms of the rate of increase or a decrease,” Bethlenfalvy said. “What we’re really focused on is making sure that we provide as much choice and convenience.”

The Ontario government is also trying to foster more innovation and competition in the insurance market, which could help lower prices overall, Peter Bethlenfalvy said.

“In my experience dealing with injured people in my practice, very few people actually buy the available optional insurance coverages that are available, even now,” Laurie Tucker, the president of the Ontario Trial Lawyers Association, wrote in a new statement.

“As Ontarians struggle to pay for housing and put food on the table, many vulnerable consumers will choose not to opt in and then they will be left without adequate coverage in the case of an accident.”

Thankfully, average insurance premiums have risen by less than 10% since 2019, according to the Financial Services Regulatory Authority of Ontario. This, at least, provides some solace for Ontario drivers (especially those residing in the GTA).

Ontario Drivers Could Soon Opt for Less Insurance, but in the meantime thank you for keeping up with the My Hunter blog page! If you have questions about this topic, or if you need advice on anything related to auto or home insurance, you can reach out to us through the Contact page on our website.

And remember, if you live in Ontario you can always call My Hunter at 1-877-454-4476 to speak directly to a licensed insurance broker!

By Dan McDonald, Marketing Coordinator