April Fools – “Changes to Ontario Auto Insurance Give You More Choice”

Just in time for April Fools’ Day, a letter arrived at my home from my automobile insurer.  My insurer was “writing to inform you of upcoming changes to your automobile insurance”.  Enclosed with the letter was an “introduction to these changes, provided by the Financial Services Commission of Ontario.”  The letter advised “your coverages remain unchanged until your next renewal”.

The enclosed “introduction” was entitled “Changes to Ontario Auto Insurance Give You More Choice”.

This introduction indicated:

• “On June 1, 2016, changes to auto insurance in Ontario will give you more choice and control over your insurance and premiums.
• Statutory accident benefits are changing, and new optional accident benefit choices will be made available to allow you to customize your policy to suit your individual needs.
• The choices will give you greater influence over the price you pay for insurance.  The cost of your policy will vary based on the coverage you purchase.”

The introduction further advised “your policy won’t change until it is time for it to be renewed”.

As George W. Bush famously once tried to say “fool me once shame on you, fool me twice shame on me”.

It is bad enough that the Ontario Government has chosen to reduce benefits and restrict access to those reduced benefits.  But then the Ontario Government has the audacity to describe (spin) the reductions and restrictions as something that provides more “choice” to potential accident victims.  As well, the Ontario Government is simply wrong (dare we say “prevaricating”) when it states that “your policy won’t change until it is time for it to be renewed”.

Ontario Regulation 251/15 with respect to No-Fault Statutory Accident Benefits becomes effective on June 1, 2016.  For existing policies (those issued before June 1, 2016) the amounts of coverage (maximum limits) remain the same until the policy renews but then the coverages are drastically reduced unless “optional” coverages are purchased.

Read full Accident Benefit Reporter article by personal injury lawyer David Tenszen: April Fools – “Changes to Ontario Auto Insurance Give You More Choice”