The Financial Services Commission of Ontario (FSCO) has just recently amended some of Ontario’s automobile insurance regulations. FSCO is the governing body that licenses and regulates insurance companies in the province of Ontario. These changes will impact your auto policy within the next year with regards to coverage, deductibles, discounts, and the rating of minor accidents. Some of the key points to the 2015 reform include:
1minor accidents under $2,000 (june 1, 2016)
Did you know that if you are involved in an auto accident, regardless if either party reports it to their insurance company, you must disclose the accident to your broker or agent? Disclosing this accident to your insurance representative either during your policy term or during the application process could be rated against you. However, this new change states that any minor accidents under $2,000 now can’t be rated against you.
2interest for monthly payments to 1.3% (JUNE 1, 2016)
Currently the standard interest amount among insurance companies for monthly payments is 3% of your total premium. After June 1, 2016 insurance companies will only be allowed to charge a maximum of 1.3% interest for a 12 month policy term, and 0.65% for a 6 month term
3Comprehensive DEDUCTIBLE raised to $500 (JUNE 1, 2016)
Currently a large percentage of HMS Insurance’s auto policy’s have a deductible of $300 for the comprehensive coverage portion. In previous years this deductible has been as low as $100, but to eliminate the frequency of minor claims this mandatory deductible has been increased to $500.
4winter tire discount (January 1, 2016)
Some insurance companies are already providing a winter tire discount. Within our brokerage, Aviva Canada is currently offering a 5% discount for vehicles that are equipped with winter tires between November and April. This discount is now being made mandatory for every insurance company within Ontario, so if you have winter tires give us a call and save some money!