Do you recall receiving a notice from your insurance company about reforms to the Ontario automobile policy? Your insurance company sent out a notice to all their policyholders on June 30, 2010.

The Accident Benefits Coverage on your Auto policy is changing starting with September 1, 2010 renewals.

Now you’ll have the option to choose the accident benefits coverage you want, however significant coverage is being taken away and you need to be aware of this. It’s important that you understand the reduced coverage and know the options available to you, as these may affect not only the drivers on your policy, but other family members as well, whether you’re accident is at fault or not.

At renewal, your policy will be stripped down to basic Accident Benefits coverage. You will most likely want to buy back some of this important coverage.

Make sure you go over your accident benefits options with your broker. Attached you'll find a chart that compares your old benefits with the new benefits that will be in effect once you renew your policy after September 1, 2010. The other columns show you the buy-back options available. We’ve included a glossary of terms here to help you understand your auto policy’s accident benefits.

One important change that affects everyone as of September 1st (regardless of your renewal date) is that the minor injury limit for medical & rehabilitation expenses is being reduced to $3,500. A minor injury means a sprain, strain, whiplash, contusion (bruise), abrasion (scratch), laceration (gash) or dislocation. The most that an insurer will pay for treatment after a minor injury is $3,500.

Accident Benefits Options

Increased Income Replacement – the standard level of income replacement provided in the policy ($400 per week maximum) can be increased by purchasing optional coverage so that the weekly limit is up to $600, $800 or $1,000.

All income replacement benefits are based on 70% of your gross weekly income.

Income replacement option: $400___ $600___ $800___ $1000___

Increased Medical, Rehabilitation and Attendant Care – the standard benefit pays up to $50,000 for medical and rehabilitation expenses, with a 10 year time limit in most cases, and up to $36,000 for attendant care expenses. If catastrophically impaired, the standard benefit pays up to $1,000,000 for medical and rehabilitation expenses and up to $1,000,000 for attendant care expenses.

You can purchase an optional medical and rehabilitation benefit of $100,000 for Non-Catastophic & optional attendant care benefit of $72,000 for Non-Catastrophic;

 Med, Rehab, Attendant Coverage: Standard___

Med, Rehab $100,000___     Attendant Care $72,000___

OR you can purchase ENHANCED OPTIONS for Medical & Rehabilitation and/or Attendant Care:

 Medical, Rehab Non-Catastrophic $1,100,000 and Catastrophic $2,000,000 ________

 Attendant Care Non-Catastrophic $1,072,000 and Catastrophic $2,000,000 ________

Caregiver, Housekeeping and Home Maintenance Expenses – The standard caregiver, housekeeping and home maintenance expenses benefit is available only for a person who is catastrophically impaired. You can purchase an optional benefit to provide this coverage for all impairments.

         Caregiver, Housekeeping and Home Maintenance coverage:

Standard___ All impairments___

Dependant Care – There is no standard dependant care benefit for persons who are employed and care for dependants. You can purchase an optional benefit to receive additional weekly dependant care expenses of $75 for the first dependant, and $25 for each additional dependant, up to $150 per week.

Dependant Care: None___ Optional Coverage___

Increased Death and Funeral – the standard level of death benefits paid to the surviving spouse and dependant of a person who is killed ($25,000 to surviving spouse; $10,000 to each surviving dependant) can be doubled by purchasing this optional coverage. This coverage also increases the standard funeral expense benefit from $6,000 to $8,000.

 Death and Funeral Benefit level: Standard___ Increased optional coverage___

Indexation Benefit – this optional coverage will ensure that certain weekly benefit payments and monetary limits will increase on an annual basis to reflect changes in the cost of living.

  Include Indexation benefit? No___ Yes___

Added Coverage to Offset Tort Deductible – OPCF 48 – This endorsement will provide a buy down on the deductible currently imposed by the Insurance Act on any settlements you should be awarded for pain and suffering following an automobile accident.

Include Offset Deductible option? No___ Yes___

Please understand that your selections regarding these coverages will affect the potential amount you can receive toward settlement should you be injured an automobile accident, whether you are at fault or not. Please ensure you speak with your broker regarding the coverage and options outlined above.

More information is available at: www.understandingmyinsurance.ca   or  www.fsco.gov.on.ca       or  www.ibc.ca