On July 1, Ontario drivers became able to opt out of nine accident benefits previously included in the Statutory Accident Benefits Schedules in auto insurance policies. While standard medical, rehabilitation and attendant care benefits remain included, according to the Insurance Brokers Association of Ontario, people who choose not to buy all optional benefits may only save approximately $100 annually.
Under these changes to Ontario’s SABS, the optional benefits under one’s auto insurance policy only apply to the named insured, the spouse of the named insured, dependants of the named insured and of the named insured’s spouse and persons specified in the policy as drivers of the automobile.
Collision Repair magazine wants to know: Does shifting the risk away from insurers ultimately transfer costs, pressure and complexity elsewhere in the system? If customers have fewer financial protections after a collision, where does that pressure land?
In other words, when insurance coverage shifts, does the impact remain within the insurance industry — or does it ripple throughout the entire collision repair and claims ecosystem?
The auto insurance reform survey is now live until July 30. Responses will be featured in CRM 25#5.
