Ont. Providing Choice in Auto Insurance

On November 2, 2009, Ontario Finance Minister Dwight Duncan announced changes to the provincially-regulated Ontario auto insurance product.  These changes will reduce the amount of mandatory insurance coverage that a consumer must purchase by law, and will require insurance companies to offer additional coverage on an optional basis. 

Click here to read a government prepared summary of these changes.

Also announced were a number of measures that will reduce the opportunity for fraud and waste arising from the current over-treatment of minor injuries and related multiple assessments.  In particular, minor injury costs will be capped at $3,500 and assessments at $2,000.  Timelines to consider and assess claims will be lengthened and related regulations simplified. 

Click here to read a government prepared summary of the options that will be available to consumers under these reforms.

There is a lot of detail to be resolved over the coming weeks, but it is likely that: we will see final regulations in early 2010; companies will be asked to file new rates in early spring; and changes will come into effect on July 1, 2010.  Some cost control measures may be introduced sooner.

Overall, this announcement is very positive for our ability to control costs as an insurer, while providing increased choice and flexibility to consumers.

The Dominion encourages you to speak with your independent insurance broker about which insurance products are right for you.  We strongly believe consumers should have access to independent, professional advisors, who provide advocacy on your behalf, which is why we distribute our products exclusively through independent brokers.