Left Navigation Paying More for Less Coverage We agree that Ontario auto insurance premiums are too high. There have also been some changes to coverage. Why is this? Between 2004 and 2010, the cost of accident benefit payouts in Ontario rose about 180%. This is mainly because the costs of assessing – not treating – an injury rose 235%. During the same period, premiums rose (on average) only 5.6%. Despite the huge increase in accident benefit injury claims, Ontario roads have become safer. There has been a 12% reduction in severe collisions that require victims to be hospitalized.So where is all the claims money going? Sadly, there are many medical rehabilitation clinics, lawyers and paralegals, tow truck operators and body shops that make their money from Ontario’s generous auto insurance system. They believe that if the money is there, they should use it regardless of specific needs.To stop insurance rates from increasing, the Government of Ontario changed the cap on minor injuries and introduced other reforms to ensure that the dispute resolution system for determining eligibility to accidents benefits is efficient and cost effective for all parties. Read IBC Ontario Vice-President Ralph Palumbo’s op-ed, Why Auto Insurance Rates Are So High, for an in-depth explanation about auto insurance rates. Car Insurance Q&AQuestion to ask your insurance representative.All about Auto InsuranceRegardless of where you live in Canada, auto insurance is required by law. You are not authorized to drive without it. Related ServicesAluminum Siding Vs. BrickThe exterior of a home, such as whether it is built with aluminum siding or brick, is an important factor when calculating its replacement cost, (i.e., what it would cost to rebuild the house using similar materials if it were destroyed). Replacement cost, in turn, plays a large role in determining the premium for your home insurance policy.Insurance Benefits after an Auto CollisionIf you are seriously injured in an auto collision, your accident benefits (AB) coverage pays for rehabilitation treatment, income replacement and other services to help you recover.Car Improvements Following a CollisionIs a collision an opportunity to improve your vehicle? No, that would be fraud. Fraud is illegal and increases the cost of insurance for all drivers in Ontario.Neighbourhood Impact on Auto InsuranceWhere we live matters to us. That’s just as true when it comes to the cost of auto insurance. Premiums can vary from neighbourhood to neighbourhood and from city to countryside.Colour Impact on Auto Insurance RatesThe colour of your car does not affect your car insurance premium. While the colour may be important to you, it’s not important to your insurance company.Medical Expense Payments Following a CollisionProvincial health insurance plans, private health insurance plans and auto insurers are all responsible for some of your expenses if you are in a collision. In Canada, auto insurers cover most medical expenses (other than for acute care).Flood Damage CoverageGenerally, overland flooding is not covered. Overland flooding occurs when water from rivers, streams or other bodies of water flows onto dry land and causes damage to homes. This kind of flooding can be caused by a spring thaw.Act of GodInsurance companies don’t use the phrase “acts of God.” They use the word “perils” to describe events that an insurance policy covers, and “exclusions” for events or situations that are not covered.Gas Vs. ElectricDo gas or electric appliances affect your home insurance premium? Absolutely not. Insurance FraudIf you are seriously injured in an auto collision, your accident benefits (AB) coverage pays for rehabilitation treatment, income replacement and other services to help you recover.Insurance PoolIs the money you pay for insurance set aside just for you, to cover any claims you have? Simply put – no. Useful LinksClaims ProcessImmediately after a collision, contact your insurer to make a claim. Learn more about the claims process in your province.Paper FraudWhen a criminal reports a collision that never occurred, it’s known as paper fraud. Jump-ins are reported as collision occupants but were not in the vehicle at the time of the reported collision.Rights and ResponsibilitiesInsurance companies, brokers and agents are committed to safeguarding your rights when you shop for insurance and submit a claim following a loss. Buying TipsInsurance is a significant investment. Before you purchase coverage, getting answers to key questions can help you make informed decisions.