Auto insurance rates expected to drop
Posted Jul 15, 2010 02:25:31 PM.
This article is more than 5 years old.
Changes to Ontario’s auto insurance regulations mean reduced rates for many drivers. The changes are set to take effect September 1st and will see rates drop by an average of 1%. The new rates were approved today by the provincial regulator.
James Geuzebroek is with the Insurance Bureau of Canada and he tells 570 News the changes, for which the industry has long been lobbying, will see some auto insurance benefits reduced in Ontario. “Upon your renewal, your standard auto policy is going to have $50,000 in medical rehabilitation care for most injuries,” Geuzebroek explains. “Currently (that amount) is $100,000.” Policies will still contain an exception for catastrophic injuries, which will remain eligible for up to $1-million in care. Other cost reductions have been achieved through streamlining the claims process and Geuzebroek says even with the changes, the auto insurance benefits paid in Ontario remain the most generous in the country.
The changes will take effect upon policy renewal and Geuzebroek says drivers will receive information 45-60 days before their renewal date, explaining the changes. Beyond that, he expects the process to be transparent. “When people are in a collision and they are injured, (it’s important) that they get the care that they need. Even with these lower benefit limits, we firmly believe that remains the case,” Geuzebroek says. “At the same time, what is extraordinarily important to every driver out there is affordable premiums.”
Geuzebroek characterizes the changes approved today as good news for both drivers and the insurance industry. “They (the changes) are designed to bring in some cost controls, stabilize some of the costs in the system, while at the same time giving more choice to consumers.” To that end, any driver wishing to keep medical rehabilitation benefits at the $100,000 level are able to buy a policy with the additional coverage.
Geuzebroek says auto insurance costs in Ontario have been rising rapidly over the past several years and premiums have been following suit, making the product unaffordable. That sparked a review by the government regulator responsible for insurance, with input from the industry about how best to achieve some cost control.
