Accident Benefits Have Changed: Get the Coverage You Need
Most people don’t thrill to go over the fine print details of their vehicle insurance. (We agree that it doesn’t make for scintillating reading.) That means that some policyholders overlooked the information they received about major insurance changes that took effect June 1, 2016.
At Leo Martin Insurance Brokers Ltd, we are specifically concerned about the changes that were made to Accident Benefits because these could have a big impact on our customers’ quality-of-life if they had a serious car accident.
The purpose of the changes—that affect all auto insurance policies purchased or renewed on or after June 1, 2016—was to make auto insurance premiums more affordable and give driver more customized options.
In a nutshell, here’s what’s changed when with your Accident Benefits:
- The statutory accident benefits that you would receive if you were injured in a collision (regardless of who is deemed at-fault) are no longer the same.
- The max amount available for some benefits has been reduced.
- Some options for increased coverage have either been altered or eliminated.
What are Accident Benefits?
If you were injured in a car accident, you would receive financial help for medical care through your Statutory Accident Benefits. These benefits would also result in compensation if you, your passengers, or pedestrians suffered injury or death in an auto accident. You would receive these benefits whether you were at-fault or not.
If you are injured in an auto accident, you may be entitled to the following Accident Benefits:
- Income Replacement: Compensates you for lost income.
- Non-earner: Provides compensation if you are completely unable to carry on a normal life and do not qualify for an Income Replacement or Caregiver benefit.
- Caregiver: Provides compensation for some expenses incurred when you cannot continue as the main caregiver for a member of your home who is in need of care.
- Medical: Pays for medical expenses incurred when you are injured.
- Rehabilitation: Pays for rehabilitation expenses incurred when you are injured.
- Attendant Care: Compensates you for some of the expense of an aide or attendant.
- Compensation for Other Expenses: Pay for some other expenses such as the cost of family visiting you during treatment or recovery. It may also pay for some housekeeping and home maintenance, the repair or replacement of some items lost or damaged in the accident, and some lost educational expenses.
As of June 1, 2016, the standard coverage automatically included for the above services in all policies was reduced.
What changed? Medical, Rehabilitation and Attendant Care Services were all combined and are now subject to new, lower coverage limits. This means that if you have a standard policy, there is less money available to you if you are injured in a car accident and need access to medical funds.
Benefit |
Old Policy |
After June 1, 2016 |
| Medical and Rehabilitation for non-catastrophic injuries Attendant Care for non-catastrophic injuries |
$50,000
|
These benefits have been combined and reduced to $65,000 total |
|
|
||
| Medical and Rehabilitation for catastrophic injuries Attendant Care for catastrophic injuries |
$1,000,000
|
These benefits have been combined and reduced to $1,000,000 total |
Customize Your Coverage
If you aren’t comfortable with the lower amounts of medical coverage available with a standard policy, you have options.
There are new levels of Optional Increased Accident Benefits coverage available. There are also new options available to address increased Medical, Rehabilitation and Attendant Care coverage limits.
We’re Here to Help
The amount of options for Accident Benefits can be confusing. Our insurance brokers are happy to walk you through the optional coverages and look at what makes the most sense for you. We’ll take into account your budget, any private insurance you have through an employer, and your needs and preferences.
Whether you’re an existing client who wants to review your current policy or a new client who wants to go over your options, get in touch. We’re here to help.
