You may not know that on June 1st, 2016 province mandated changes to Ontario’s auto insurance products took effect. The 2014 Fighting Fraud and Reducing Automobile Insurance Rates Act was passed with goals to fight fraud and abuse, provide greater choice and lower rates for consumers.
Now taking effect, the changes are most significant in that they adjust total benefit coverage and give you more options to customize your automotive policy for your needs. A few key things to know:
- Despite the official date of June 1st, you won’t see the update until you renew your insurance policy. Talk to your broker to ensure that your new coverage gives you the same protections.
- You’ll have more options and flexibility, but make sure you understand the new combined benefit amount and areas where increases can be added.
- If your new or renewed auto insurance policy is over twelve months the maximum fees charged for monthly premiums will drop from 3% to 1.3%
- In an at fault accident if the damages are under $2,000 and paid out of pocket by the at-fault driver, they won’t impact your insurance policy rates.
- The new changes allow for more flexibility and the potential for lower rates, but you’ll want to ensure that your policy still fits your unique needs.
As always, the team at McCAM Insurance is here to help and we’ll go over the changes and updates to your policy with you in detail at your renewal. In the meantime, we’re more then happy to answer questions – so give us a call, send us an email or come in and see us at the office.