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Ontario Auto Insurance Reforms

What you need to know. The Ontario government is introducing significant reforms to the auto insurance system, in order to provide you, the consumer, more choice over the coverages and price you pay for insurance. These additional accident benefit choices will allow you to customize your policy to suit your needs.

Standard Auto Insurance Policy

In Ontario, the Insurance Act determines the standard coverage that consumers must purchase. As a result of the reforms, some of the features under the Standard Auto Insurance Policy have changed. Beginning June 1, 2016, if you are either buying a new auto insurance policy or renewing an existing one, you will have more options to purchase a level of coverage that is right for you.

All auto insurance policies will continue to include the following:

In addition, if you previously purchased Collision and/or Comprehensive coverage, it will still be included in your policy.

Statutory Accident Benefits – New Options

See comparison tables to find out the Statutory Accident Benefits coverage offered before and after June 1, 2016 and the new options available.

Customized deductibles

You also have the choice to customize your deductibles.

  • Tort deductible – You have the option to reduce the deductible associated with court awarded compensation for pain and suffering to $20,000, and for Family Law Act claims to $10,000.
  • Direct Compensation – Property Damage Coverage – You have the option of a $500, $300 or no deductible at all on coverage to repair the auto of the driver who is not-at-fault.

Other changes

The government’s reforms lay the foundation for an auto insurance system with greater price stability, and more protection for you, the consumer. Other key changes include:

  • Minor accidents that occur on or after June 1, 2016 may not affect your premium
  • The standard deductible for comprehensive coverage is now $500
  • A winter tire discount is available
  • The definition of catastrophic impairment has been revised to reflect more current and up to date medical information
  • The duration of the non-earner benefit has been changed to two years following the accident with an initial waiting period of four weeks
  • Standard bodily injury deductibles are now subject to inflation

Previous changes under your existing policy that are still in effect

  • Many injuries received in an auto accident are minor. If you have a minor injury due to an auto accident, your medical and rehabilitation accident benefits are limited to $3,500 regardless of the coverage level you have selected.
  • Accidents where you are 25 per cent or less at-fault will no longer affect your premium.
  • The deductible that is applied to court awards for fatal accidents has been eliminated.
  • A new requirement that insurance companies send out benefit statements to their claimants, advising how much has been paid to date, and the additional amounts remaining for medical, rehabilitation and attendant care benefits.
  • If your auto has been damaged or written off after an accident and you don’t agree with the value you have been offered or your degree of fault for the accident, you can choose the appraisal process outlined in the Ontario Auto Policy to settle the dispute, and the insurer must agree to participate.
  • Coverage is extended to rented autos with a Gross Vehicle Weight Rating (GVWR) of more than 4,500 kilograms, if for personal use and rented for up to 7 days.
  • Prohibiting use of credit scores in giving quotations for your auto insurance rates.

Still have questions?

Read all Frequently asked questions about Ontario auto insurance reforms

Additional information about auto insurance reforms in Ontario

Insurance Bureau of Canada (IBC)
Financial Services Regulatory Authority of Ontario (FSRA)


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