Monday, November 2, 2009

Ontario Revises Rules to Cut Auto Insurance Costs

auto insurance

Ontario proposed changes to its insurance regulations that would offer drivers basic auto insurance to help lower premiums.

Ontario Finance Minister Dwight Duncan today announced 41 reforms to auto insurance in the country’s most populous province to give consumers more choices on coverage.

“This balanced set of reform lays the foundation for an auto insurance system with greater price stability,” Duncan said on the government’s Web site. “Drivers can choose coverage that provides them with the protection they need based on their own preferences and circumstances.”

The changes may help lower insurance rates for drivers after premiums on average rose 9 percent this year, the Toronto Star newspaper reported earlier today.

The proposals would reduce the minimum coverage for medical and rehabilitation benefits, attendant care and deductibles on court-awarded compensation, according to the Web site. Drivers have the option to increase any of the coverage.

The cap for medical and rehabilitation benefits for non- catastrophic claims would be reduced to C$50,000 ($46,540). The changes introduce a C$100,000 optional medical and rehabilitation benefit along with the existing C$1 million optional benefit.

The reforms are based on recommendations provided by the Superintendent of the Financial Services Commission of Ontario, and would go into effect by the middle of next year.