On June 1, 2016, the automobile insurance coverage available to Ontarians fell dramatically, meaning car crash victims will now receive significantly less money to help them get back on their feet. The decreased coverage will take effect upon policy renewal. Unless consumers purchase optional additional coverage, the amount of coverage they have will be significantly less than it was prior to the June 1st changes.
It is very important for consumers to ask questions of their insurers, agents and brokers to ensure they have enough coverage. As difficult as it is to imagine being in an accident, it is important to give some thought to how much coverage might be needed. In many cases, additional insurance coverage over and above the basic package will add very little to your premium. For example, one insurer recently quoted approximately $50 to double the liability coverage in the event of an at-fault accident from one million to two million dollars. That’s money well spent!
With this in mind, we offer the following questions to consider discussing with your insurance representative when purchasing coverage.
- How much would my insurance company pay on my behalf if someone insured on my policy caused an accident? Would it be enough to protect my assets?
- How much would my insurance company pay on my behalf if I was hurt by an at-fault driver who couldn’t be identified, was uninsured, or didn’t have enough insurance coverage?
- If I was unable to work because of an accident, how much would my insurance company pay to replace my lost income? Would it be enough to cover my monthly expenses?
- If I needed medical, rehabilitation, and attendant care because of an accident, how much would my insurance cover? What if I have a catastrophic injury?
Be sure to ask your insurance representative how much the additional coverage would cost and keep in mind that while buying insurance is mandatory, it’s also an important part of everyone’s financial planning. Take the time to do it right and protect yourself and your family.