How Ontario’s Auto Insurance Crisis Affects YOU

Ontario Auto Insurance Crisis

There is an auto insurance crisis in Ontario that most people are unaware of until they find themselves in a situation that requires the involvement of their provider.

The Ontario Trial Lawyers Association and the Fair Association of Victims for Accident Insurance Reform are calling for a provincial inquiry into the benefits crash victims receive and how doctors assess victims of a crash.

The president of the OTLA told The London Free Press recently that “Ontario’s auto insurance system is in crisis.”

Steve Kee of the Insurance Bureau of Canada stated that “there are many in the car accident business making large amounts of money. The system needs to stop seeing those costs reflected in premiums.”

According to the OTLA, your insurer spends 70 cents on fighting an accident claim for every dollar that that is paid out to a victim. This suggests that industry profits are quite healthy if they are able to investment a large amount of money and effort towards finding a reason to deny your claim.

Drastic Cuts and Higher Premiums

The auto insurance crisis Ontarians are facing is enormous.

If you drive or own a car, you are required by law to have automobile insurance. You pay an insurance premium in order to be covered in the event of an accident.

You’re paying for your car to be repaired or replaced, but you’re also paying for benefits in case you are injured.

These benefits include income replacement benefits (if you can’t work for a certain period of time) and medical and rehabilitation benefits (you may need to be treated by a chiropractor, massage therapist, physiotherapist, or other medical practitioner).

Over the past several years, these benefits have been significantly reduced.

For example, before September 2010, somebody injured in an accident was awarded up to $100,000 for rehabilitation treatments. Now, unless your break a bone or suffer a full ligament tear, you are capped at just $3,500 for treatments!

The limit for more damaging injuries was reduced from $100,000 o $50,000.

Benefits for catastrophic injuries was also cut from a maximum of $2,000,000 down to $1,000,000.

Meanwhile, auto insurance premiums have continued to rise!

This is why it is SO IMPORTANT to get a knowledgable and reputable personal injury lawyer to represent you if you are injured in a car accident. Without such a lawyer you are outgunned by the insurance company that swore to protect you in the event of an accident. Contact the team at Samfiru Tumarkin LLP for a free personal injury consultation.