Ontario Auto Insurance Reforms Take Effect July 1

Major changes to Ontario auto insurance take effect July 1, but many drivers are unaware of how the reforms will affect their coverage.

For new policies, several benefits will become optional instead of mandatory, including income replacement for lost income due to injuries, death and funeral expenses, and caregiver and non-earner benefits. Only medical, rehabilitation and attendant care will remain mandatory on all policies.

For existing policies renewing on or after July 1, all current benefits stay the same unless policyholders opt out. The choice to drop optional benefits could save between $7 and $20 per month, though dropping coverage means losing protection worth hundreds of thousands of dollars after a serious accident, according to insurance brokers.

"People really need to be aware of what they're losing if they opt-out," said Aaron Blackwood, senior sales manager for Mitch Insurance. "It's a lot of protection to lose, just to save a few bucks per month."

The reforms also change who receives benefits when an accident occurs. Starting July 1, only the insured named on the policy, their spouse, dependents and drivers listed on the policy can access the driver's benefits. Any other passenger will only receive mandatory benefits.

Insurance agents recommend policyholders contact their provider to understand the changes and their options before July 1.