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The proposed Ontario 2024 Budget includes changes to the standard automobile insurance policy.

The proposed changes would reduce the types of mandatory benefit coverage and increase the benefits that consumers would need to purchase as optional coverages. The proposed changes appear to remove standard income replacement benefits. The government says the potential for more personalized policies could save money for consumers and avoid duplication of certain coverages. Yet, it’s essential to navigate these waters carefully, especially when it comes to adjusting your benefits.


Considering Property Damage Coverage

Skipping property damage coverage might seem like a cost-saving measure, but it’s crucial to be aware of the broader implications. If your vehicle is financed or leased, removing this coverage could conflict with your agreement’s terms. It’s wise to review your contract and discuss your insurance coverage with your lender to ensure compliance and avoid any potential issues.


Deciphering Optional Benefits

The exact details on which benefits will become optional are still up in the air. This uncertainty means you should keep a keen eye on updates and weigh how each choice might affect you if the unexpected happens.


What This Means for You

With the new flexibility, comes the responsibility to ensure you’re not underinsured. Think about:

Your Financial Well-being: How will opting out affect you financially in case of an incident?

Your Legal Duties: Are there obligations with your lender you need to keep in mind?

Your Risk Exposure: What are your personal needs based on your driving habits and vehicle?


Final Thoughts

As you navigate Ontario’s auto insurance changes, remember the importance of making choices that do not compromise your protection or legal standing. You really need to consult with your broker or underwriter as to what benefit you need given your employment status, whether you are self employed, whether you have group benefits through work in addition to automobile benefits etc.

Our Personal Injury team at Nelligan Law is here to provide guidance and support in the case you are injured in an accident including a motor vehicle accident.  We’re dedicated to ensuring you and your loved ones remain protected and informed, helping you navigate the process after an accident.


This content is not intended to provide legal advice or opinion as neither can be given without reference to specific events and situations. © 2021 Nelligan O’Brien Payne LLP.

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