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Ensuring More Premium Dollars Go To Treat Accident Victims

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Ensuring More Premium Dollars Go To Treat Accident Victims

McGuinty Government Giving Drivers More Choice for Auto Insurance

Ministry of Finance

Ontario's auto insurance reforms take effect today.  These changes are designed to reduce excess assessment costs in the auto insurance system and ensure more accident benefit dollars go to treating accident victims.  This will help stabilize auto insurance premiums in Ontario.

As part of the changes, drivers will also benefit from new consumer protection measures, including the implementation of a regulation to prohibit the use of a driver's credit rating in determining their eligibility and/or the price they pay for auto insurance.

Ontario's standard medical and rehabilitation benefits remain the most generous in Canada, when compared to other provinces with similar auto insurance marketplaces.

Ontario drivers now have more choice when it comes to their auto insurance coverage.  Drivers can opt for a new standard level of auto insurance coverage, or they can choose to buy additional levels of coverage based on their own circumstances.  

Ontario remains committed to ensuring that the province's auto insurance system is affordable to the nine million Ontario drivers who don't make accident claims, while providing necessary benefits to accident victims.

Quick Facts

  • From 2004 to 2009, the costs for exams and assessments for people injured in accidents increased by more than 250 per cent per car, while costs for medical treatment more than doubled. These increases occurred despite the number of accident claims rising by only 13 per cent over the same time.*
  • The overall costs for exams and assessments in Ontario increased from nearly $250 million per year in 2004 to more than $900 million in 2009.*
  • Beginning today, all Ontario drivers who have minor injuries due to an auto accident are limited to $3,500 in medical and rehabilitation coverage, regardless of the coverage level they have selected.
  • Provinces with similar auto insurance marketplaces, such as Alberta and New Brunswick, have $50,000 in medical and rehabilitation coverage. Insurers in PEI, Nova Scotia and Newfoundland provide $25,000. Unlike Ontario, these provinces do not provide a higher level of benefits for people with more serious injuries, and only provide limited ability to buy higher accident benefit coverage.
  • *Source: General Insurance Statistical Agency

Additional Resources


“The new auto insurance reforms will ensure greater price stability for auto insurance. There are many insurance companies competing on cost and service in Ontario, so I encourage drivers to do their homework and find coverage that provides them with adequate protection at a reasonable price.”

Dwight Duncan

Minister of Finance

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