Have Changes In Ontario Insurance Law Left Citizens Under-Insured?

Seven years ago, changes to the insurance laws were implemented which went overlooked by up to a fourth of motorists across the province. These changes reduced the general benefits for all drivers, while leaving them the option to make additional purchases for extra coverage if they so wished to do. However, due to the lack of awareness raised around these matters, only about seven percent of motorists actually opted for purchasing extended liability insurance, and a meager six percent chose to invest in additional medical coverage.

Problem With The Current System

With roughly ten million motorists across all of Ontario, it is a very respectable achievement to hold the title for province with the lowest rate of fatalities and accidents across all of Canada. Yet, despite this, they are also forced to pay the most for insurance premiums. The reason herein lies with the way the Ontario insurance system has been structured, a Ministry of Finance report has stated. In Ontario, every motorist needs to obtain auto insurance which has been separated into a two-tiered system made up of statutory accident benefits, and tort, which is sometimes also referred to as the bodily injury part of the system.

Statutory Accident Benefits:

These benefits account for the no-fault part of the auto insurance system. Thanks to this part of the system, the insured will be entitled to obtaining benefits regardless of whether they were found fully or partially liable for causing the accident or completely innocent.


Also referred to as bodily injury, this part of the insurance plan will provide coverage to all drivers who are found partially or fully liable for an accident, and thus require to pay damages to the other involved party who has been injured as a result.

The Differences Between Provinces

While these insurance coverages have been made obligatory by the Canadian government, it is still up to private insurance companies to raise motorists’ awareness of them. This is in opposition to other provinces in which programs are mandated by the government. The coverage in these provinces is offered either via certain government agencies, or in parts via the government and other parts via the private sector.

How Motorists Are Affected By Such Changes

The severe cuts in granted benefits leave motorists with roughly half the maximum benefits they were previously granted. Thus, in case of an accident, it might leave the plaintiff in dire circumstances. If you or a loved one has been in an accident, it is important to call in the injury lawyer in Sarnia to assist you. They will evaluate your claim and based on the merits of the case, represent your rights.