Virtual Classrooms
0

Ontario auto insurance consumers slow to add optional coverages

It’s been one year since Ontario introduced its new auto insurance reforms. First introduced in November 2009, the Ontario government said the 41 changes would include measures to “protect consumers, increase consumer choice and streamlines the auto insurance system and reduce transaction costs.”

How are the reforms doing?

In January 2011, the Financial Services Commission of Ontario (FSCO) asked the largest private passenger auto insurance insurers in Ontario to complete a survey in order to understand consumers’ purchasing habits regarding optional coverages.  The survey covered policies written between September 1, 2010 and December 31, 2010.

The 24 insurance companies surveyed represented 78 per cent of the Ontario market, based on written premium.

FSCO has released a summary of the findings in its latest newsletter.

The following is the summary of the percentages of policyholders that have purchased optional coverages:

  • Increased death and funeral – 4.76 per cent
  • Increased income replacement ($600) – 0.26 per cent
  • Increased income replacement ($800) – 0.13 per cent
  • Increased income replacement ($1,000) – 0.17 per cent
  • Increased medical and rehabilitation to $100,000 – 1.31 per cent
  • Increased attendant care to $72,000 – 1.22 per cent
  • Increased medical and rehabilitation to $1.1 million and increased attendant care to $1.07 million – 1.04 per cent
  • Caregiver, housekeeping and home maintenance – 0.64 per cent
  • Dependent care benefit – 0.25 per cent
  • Indexation – 0.29 per cent
  • Ontario Policy Change Form (OPCF) 48 – Added Coverage to Offset Tort Deductibles – 0.19 per cent

Leave a Reply





+ 5 = 10