Ontario Automobile Insurance Reforms 2016

Ontario Automobile Insurance Reforms 2016

A new standard Ontario automobile insurance policy will come into effect on June 1, 2016.

The new standard includes reductions in coverage particularly as they relate to the Statutory Accident Benefits (SAB) from the current auto policy.

This information is intended to assist brokers in the development and implementation of a plan for communicating with their clients about the Ontario Automobile Reforms. Further, it is designed to provide guidance on receiving and documenting client instructions relating to auto coverage in light of these reforms. Your clients are entitled to your advice on their options under the new standard auto policy. The presence of a clear and consistent approach toward communication and documentation will enable a broker to demonstrate if asked; that meaningful steps were taken to service their clients in a conscientious and
diligent manner.

ILScorp will have a brand new course on the Ontario Automobile Insurance Reforms 2016 available soon.

Highlights Summary

  1. A new standard automobile insurance policy will come into effect on June 1, 2016.
  2. The new standard includes reductions in coverage particularly as they relate to the Statutory Accident Benefits (SAB) from the current auto policy.
  3.  Brokers are specifically encouraged to make all reasonable efforts to advise their clients of these changes.
  4. As policies renew after June 1st, brokers should be prepared to review with their customers how the changes will impact them.
  5. Brokers should ensure client files accurately reflect discussions and instructions received.

Background

As part of the Provincial budget announced on April 23, 2015, the Ontario Government has issued some automobile insurance reforms that will become effective on June 1, 2016. Of particular interest to brokers are a new Statutory Accident Benefits Schedule – Effective June 1, 2016 (“new SABS”). There are a number of other changes to related Regulations which will also be summarized in this document. This best practices document will focus primarily on the impact of the SABS reforms.

HOW THE REFORMS MAY AFFECT YOUR AUTO CLIENTS

The new standard Ontario automobile policy, to be effective June 1, 2016, includes several significant changes from the current standard policy including provisions that will result in lower coverage for clients.

SUMMARY CHART

A Summary Chart of the most significant new policy changes that take effect on June 1, 2016, including the current policy provisions as well as consumer choices under the new policy, are set out below:

Most Significant Changes

On June 1, 2016, if a consumer is buying a new policy or renewing an existing one, brokers should be aware of the most significant changes to auto insurance:

Screen Shot 2016-05-09 at 11.09.58 AM

Some important things to remember about these choices:

Medical, Rehabilitation and Attendant Care benefits for minor injuries are fixed at a maximum limit of $3,500.

If clients purchase both the additional Medical, Rehabilitation and Attendant Care benefit for catastrophic injuries and for all injuries, the total eligible benefit amount for a catastrophic impairment would be $3,000,000.

Other Optional Benefits

There are many other options available to purchase additional or increased benefits and coverages. The following chart lists some but not all of those and indicates if those options will change on June 1, 2016. Clients can also choose not to increase any benefit or coverage. Brokers should let clients know if they had previously purchased any optional benefits. A further review of documents is required as they may have changed.

Ontario Automobile Other Optional Benefits

NOTE: This information is a sample summary and should not be relied upon to be exhaustive. For complete information follow this link:

DOWNLOAD FULL ONTARIO AUTO REFORM DOCUMENT HERE

ILScorp will have a brand new course on the Ontario Automobile Insurance Reforms 2016 available soon.

Aviva Canada has developed an insurance solution for Quebec ride-sharing drivers

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Responding to the growing trend of ride-sharing services and the need to protect both passengers and drivers, Aviva Canada – one of the country’s leading providers of home, automobile, leisure/lifestyle and business insurance – is pleased to have developed an affordable and convenient insurance product that would bridge the insurance gap in Quebec, if the government decides to allow ride-sharing programs. Unlike carpooling, ride-sharing drivers and passengers are not covered by their personal automobile insurance policy in case of a claim.

Earlier this year, Aviva Canada made ride-sharing insurance coverage available in the province of Ontario and filed for regulatory approval in Alberta.

“We have developed a simple and affordable product designed for Quebec drivers and passengers that will give them absolute peace of mind while ride-sharing, if the government goes ahead with a dual regulation regime and pending regulatory approval,” said Martin-Eric Tremblay, Senior Vice President for Quebec and Atlantic Canada for Aviva Canada. “We’re thrilled to be providing innovative insurance solutions that meet the ever-changing needs of Quebec consumers.”

The coverage is independent of ride-sharing facilitators and is a simple addition to an Aviva-insured personal auto policy. It would become available for Quebec drivers with the required approval of the Autorité des marchés financiers (AMF). Ride-sharing drivers (such as those contracted with UberX and the like) will be protected from the moment they initiate looking for passengers through to collecting and dropping off those passengers. Eligibility for coverage will be based on some simple underwriting criteria (e.g., maximum of eight passengers, licensed for a minimum of six years, no other commercial use, etc.).

This coverage will be available for drivers that spend up to 20 hours a week participating in ride-sharing. The cost for the additional coverage will be calculated using factors such as time spent ride-sharing, area driven and driving record.

To be clear, Aviva Canada does not endorse Uber, or any other specific ride-sharing program. Aviva takes no position on the regulatory or public policy questions raised by ride-sharing, which are best left to elected government officials. It is Aviva’s view that regulation needs to work for consumers and respect the need to evolve in their best interests as innovation brings the need for new products.  As an industry leader, Aviva Canada will continue to proactively address gaps in insurance coverage that potentially leaves ride-sharing drivers and passengers without appropriate protection and benefits in Quebec.

About Aviva Canada
Aviva Canada is one of the leading property and casualty insurance groups in the country providing home, automobile, leisure/lifestyle and business insurance to more than three million customers. A wholly-owned subsidiary of UK-based Aviva plc, the company has more than 3,500 employees, 25 locations across Canada and approximately 1,500 independent broker partners.

Aviva Canada invests in positive change through the Aviva Community Fund, Canada’s longest running online community funding competition. Since its inception in 2009, the Aviva Community Fund has awarded $6.5 million to over 222 charities and community groups nationwide.

For more information visit AvivaCanada.com

SOURCE Aviva Canada Inc.

Canadians more satisfied with car insurance, but pricing still a problem

Canadians more satisfied with car insurance, but pricing still a problem

Excerpted article was written by DARREN MCGEE | The Globe and Mail

Auto insurance is a sore spot for many Canadians. Many believe they are paying too much for premiums while receiving too little in return.

However, those perceptions are changing. An annual study released Wednesday indicates customer satisfaction with auto insurance has increased for the first time in five years.

The J.D. Power 2016 Canadian Auto Insurance Satisfaction Study – this is the ninth edition – measures customer satisfaction with Canadian auto insurers, factoring in non-claim interaction, price, policy offerings, billing/payment, and claims. Insurers were ranked in four regions: Alberta, Atlantic, Ontario and Quebec. Insurance is government-run in British Columbia, Saskatchewan and Manitoba.

Improvements were noted in each of the five categories, although pricing remained a problem.

In Ontario, for example, where the Liberal government promised to reduce auto insurance rates by 15 per cent, the survey said the percentage of customers who experienced a rate increase rose to 21 per cent, up from 20 per cent in 2015. However, Ontario saw the most significant improvement in customer satisfaction.

“Rate reductions rarely affect every customer equally, with lower-risk customers, who typically have lower rates to start with, frequently being the first, and sometimes only, customers to see an actual price decrease,” said Valerie Monet, director of the insurance practice at J.D. Power. “Improvements in process and customer service benefit everyone and drive the overall improvements noted in Ontario.”

The study, conducted between Jan. 21 and March 7, is based on replies from almost 11,000 auto insurance policy holders.

THE FINDINGS

Customer satisfaction (based on 1,000-point scale)

  • Overall 758 (+8 over 2015)
  • Quebec, 786 (+3)
  • Atlantic, 768 (+6)
  • Ontario, 753 (+9)
  • Alberta, 743 (+8)

Highest-ranking companies (by province)

  • Alberta: The Co-operators, TD Insurance
  • Atlantic: The Co-operators, Intact
  • Ontario: The Co-operators, State Farm, Intact
  • Quebec: The Personal, Industrial Alliance, Promutel

WHEN IT HAPPENS THERE WILL BE A LOT LESS AUTO INSURANCE WRITTEN.

Read more
Autonomous cars will radically change the auto insurance industry

Autonomous cars will radically change the auto insurance industry

Miles Branman Digital Trends

As autonomous driving technology slowly works its way into consumer vehicles, drivers are forming opinions — some positive, some not — about turning control over to a series of computers. But it isn’t just consumers who will be affected by self-driving advances, the multibillion-dollar insurance industry is coming to grips with a very different vehicular landscape.

The issue of causality and blame in accidents is the primary concern for these insurance giants. With the number of crushes expected to drop by 80 percent come 2035 and insurance premiums to drop with them, Thatcham Research and Volvo Cars have organized a panel to discuss the impact.

Volvo’s take on the matter is that insurance companies will be forced to completely restructure their enterprises or lose gobs of business to new, more nimble enterprises.

“The medium to long term impact on the insurance industry is likely to be significant. But let’s not forget the real reason for this — fewer accidents, fewer injuries, fewer fatalities. Autonomous driving cars are the single most important advance in automotive safety to be seen in recent years,” said Hakan Samuelsson, Volvo’s president and chief executive. Samuelsson will speak today at a conference in London called “A Future with Autonomous Driving Cars – Implications for the Insurance Industry.” If that title doesn’t scream excitement, I don’t know what does!

“Vehicle manufacturers are predicting that highly autonomous vehicles, capable of allowing the driver to drop ‘out of the loop’ for certain sections of their journey, will be available from around 2021,” added Peter Shaw, chief executive at Thatcham Research. “Without doubt, crash frequency will also dramatically reduce. We’ve already seen this with the adoption of Autonomous Emergency Braking (AEB) on many new cars. Additionally, if a crash unfortunately can’t be avoided, then the impact speed will also drop as a result of the system’s performance — reducing the severity of the crash.”

For Volvo’s part, it announced a series of tests using self-driving technology to begin in 2017. The “Drive Me” program will include 100 autonomous vehicles, each being overseen by real consumers, and will be staged on roads in the U.K., Sweden, and China.

Samuelsson is pushing for regulatory bodies to embrace autonomous technology as soon as possible, and in the U.K. at least, he has some support. “Driverless cars will see our journeys become faster, cleaner, and safer, said Sajid Javid, the U.K.’s secretary of state for business, innovation, and skills. “The U.K. is leading the way in developing the technology needed to make this a reality thanks to our world-class research base and these types of trials will become increasingly common.”

The good news, it would appear, is that insurance rates will drop significantly for early adopters of self-driving technology, and perhaps even to those merely on the road with these tech-laden vehicles. There’s still the question of ultimate blame, especially in the case of an accident involving a self-driving car and a human-operated one, but we can expect new legislation on that topic to emerge shortly.

Which factors can affect my insurance premiums?

Which factors can affect my insurance premiums?

We all pay too much for insurance! So, what affects my premium? And how can I save more?

Source: Kitchener Post

What factors do insurance companies consider when calculating your insurance premiums?

No, the colour of your car has nothing to do with the calculation of your premium, and you will not be charged more for insurance if you choose to buy that new bright red sports car. What the insurance companies do use to calculate your premiums are your age, tickets, prior claims, cost of repairing, and the cost of the vehicle.

So how can you keep the premium lower? Independent of the car you chose to drive, the largest factors you have control over are tickets and prior claims. This means that the better you drive the lower your insurance cost.

“But the accidents weren’t my fault.”

In order to avoid having to make a claim, we recommend employing defensive driving techniques. Defensive driving techniques can be taught at driver training courses and are the easiest way to avoid having to make a claim.

What auto insurance discounts are available? Which do I qualify for? And how much can I save?

As an Ontario driver, you may be eligible for multiple discounts. Ontario insurance companies offer a variety of discounts to help keep your auto insurance premiums low. Discounts are available from all Ontario auto insurance companies, though they vary by company. Below is a list of commonly available discounts. Be sure to ask your broker if any or all apply to you!

• Affiliation discount

• Age discount

• Alumni discount

• Anti-theft device discount

• CAA Member discount

• Conviction free discount

• Dual-policy discount

• Experienced driver

• Extended good student discount

• Good driver discount

• Good student discount

• Graduate discount

• Graduated (G) licence discount

• Green vehicle discount

• Home & Auto discount

• Hybrid car discount

• Increased deductible discount

• Low mileage discount

• Loyalty discount

• Mature driver discount

• Membership discount

• Multi-line discount

• New business discount

• No commute discount

• Occasional driver at university discount

• Recovery system discount

• Retiree discount

• Underage driver at university discount

• Usage based discount

• Winter tire discount

This article has been brought to you by My Insurance Broker, one of the fastest growing independent brokerages in Ontario.

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