On July 1, the following<\/a> benefits will become optional for Ontario drivers: income replacement benefits, non-earner benefits, caregiver benefits, housekeeping benefits, visitor expense benefits, lost educational expenses, damage to personal items, as well as death and funeral expenses.<\/p>\nMedical benefits, rehabilitation benefits and attendant care benefits will remain mandatory when selecting an auto insurance policy after July 1.<\/p>\n
How much could you save, and is it worth it?<\/p>\n
One of the biggest changes involves income replacement benefits. Currently, drivers injured in a crash can receive up to $400 per week if they are unable to work. After July 1, that coverage will only be available if motorists choose to purchase it, according to David Mayer, director of insurance and underwriting at Rates.ca<\/p>\n
Mayer estimates that savings from opting out of some certain optional benefits would \u201ctypically be around 10 or so dollars per month, or about five per cent of the average premium.\u201d<\/p>\n
\u201cThe savings from opting out are likely to be small, the financial exposure can be really enormous if you do opt out.\u201d Mayer said.<\/p>\n
Savings will also depend on current coverage and where a driver lives in the province.<\/p>\n
Dean said costs will depend on the insurance provider and there is \u201csome potential for cost savings,\u201d but it will be a \u201cwait and see\u201d situation to determine what those savings could look like.<\/p>\n
Both Mayer and Dean noted that when looking for new coverage options after July 1, it will be important to speak with an insurance representative to understand the best choices for your situation.<\/p>\n
Optional benefits will only apply to named drivers<\/p>\n
Another change coming to auto insurance policies is the way optional benefits apply.<\/p>\n
Before the change, Ontario auto policies automatically included full benefits such as income replacement for anyone involved in an accident, including passengers, pedestrians and cyclists.<\/p>\n
After July 1, only medical, rehabilitation and attendant care benefits will remain mandatory for everyone when the driver\u2019s no-fault coverage applies. If a cyclist is hurt in a crash, benefits such as income replacement will only come into effect if that cyclist has that specific coverage.<\/p>\n
\u201cI think it\u2019s for people that really do not have any sort of auto insurance which could be left exposed for those sort of damages,\u201d Mayer said.<\/p>\n
Will my benefits change automatically?<\/p>\n
Changes to an individual\u2019s auto insurance benefits will only need to be adjusted at renewal time.<\/p>\n
\u201cIf your policy renews before July 1, there\u2019s not going to be any impact until your policy renews in the next year,\u201d Mayer said.<\/p>\n
When a policy comes up for renewal after July 1, customers will have to decide which benefits work for them.<\/p>\n
Dean noted that if someone is in hospital, out of the country, or going through circumstances beyond their control when their renewal comes up and no action is taken, after July 1 they will have the same policy they have today.<\/p>\n
Ask questions<\/p>\n
\u201cIf you don\u2019t understand something, if something\u2019s being presented to you, ask questions,\u201d Dean said.<\/p>\n
\u201cKnowledge is really power, so understand the risk. If you are going to decline any of these coverages, make sure you fully understand them.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"After July 1, Ontario drivers renewing their auto insurance policies will have to make decisions they have not…\n","protected":false},"author":2,"featured_media":735327,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[712,45,49,48],"class_list":["post-735326","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-apple-news","tag-business","tag-ca","tag-canada"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/735326","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=735326"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/735326\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/735327"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=735326"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=735326"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=735326"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}