Auto Reform in Ontario

Now you have greater choice when you buy auto insurance. On September 1, 2010, the Ontario government introduced significant changes to auto insurance that will give you more choice over the coverage you want and the price you pay. Whether you are buying a new insurance policy or renewing an existing one, you can purchase the coverage best suited to your needs and lifestyle.

What are the changes?

Some of the key changes include:

  • Accidents where you are 25% or less at fault will no longer affect your premium.
  • If your vehicle is damaged or beyond repair and you’re not happy with the settlement amount offered, or if you do not agree with the determination of how much you were at fault, you have the option to go through the Ontario Auto Policy appraisal process. We will assist you in this process.
  • The deductible amount applied to court settlements for fatal accidents is eliminated.
  • Coverage is extended on rented vehicles with a Gross Vehicle Weight Rating (GVWR) of more than 4,500 kg if they are for personal use and rented for up to seven days.
  • Minor injuries that are due to an automobile accident are limited to $3,500 in medical and rehabilitation benefits, regardless of the coverage you have selected.
  • In the event of a claim, we will send you benefit statements to keep you informed of how much medical, rehabilitation and attendant care benefits you continue to be eligible for and the amount we have paid. This will allow you to work with your adjuster to manage your benefit payments effectively.
  • You have the option to reduce the deductible associated with the court awarded compensation for pain and suffering to $20,000 from $30,000 and for Family Act claims to $10,000 from $15,000.
  • You have the option of $300, $500 or no deductible at all on the coverage to repair the vehicle of the driver who is not at fault.

How does Ontario Auto Reform affect my current insurance policy?

Ontario auto reform came into effect on September 1, 2010. Therefore, your policy will remain unchanged until your next renewal. Along with your renewal notice, we will be sending the information you need to make an informed decision on the type of coverage that best suits your needs. The choice will be yours.

Is it possible to take advantage of the changes before my insurance policy comes up for renewal?

Yes. If you would like to make changes to your policy before you need to renew it, simply contact your agent.

How can I customize my Accident Benefits?

Every auto policy will renew with a standard limit of Accident Benefits coverage. However, you can choose to increase the standard limit and/or add coverage for Accident Benefits. Read more about your choices for Accident Benefits.

Who pays when I am injured?

If you are injured in an automobile accident, we want to make sure that you receive the best care possible. As your insurer, we will pay for the health care services necessary to effectively manage your Accident Benefit claim. If your Accident Benefits coverage runs out, or the level of care you need costs more than the maximum amount stated on your policy, the Ministry of Health may consider paying for the following services:

  • Medical costs (all physician services)
  • Hospital services
  • Mental health facilities
  • Air Ambulance
  • Several professional in-home health services in a range of settings including the home, school or community
  • Any other ministry-funded services not covered under the Long-Term Care Act, 1994

Who pays first?

OHIP and extended health care plans pay for your care first. However, your automobile insurance may cover expenses over and above those plans. The order of payment is as follows:

  1. Ministry Programs:
  2. Private supplementary health and disability insurers and private employer plans.
  3. Your automobile insurer under Statutory Accident Benefits.
  4. Money awarded in a lawsuit.
  5. Provincial government plans are the last payer for:
    • Non-professional services arranged or provided through CCACs
    • All services and benefits such as vocational rehabilitation and welfare payments administered by the Ministry of Community and Social Services.

Where can I get more information about the auto reform?

Your agent can answer your questions. Or for more information, visit:

Insurance Bureau of Canada
Financial Services Commission of Ontario