Recent Auto Insurance Policy Changes in Canada, 2010

Changes to your car insurance take effect 1 Sep 2010. Call your Insurance Agent and see how the changes affect you.

If you reside in Canada, own a car and pay regular premiums toward your automobile insurance, then you should be aware of some recent changes that will be effective from 1st September, 2010, regarding the basic coverage in your auto insurance policy.

Changes in auto insurance policy in 2010

Depending upon how much you will pay for the coverage on your automobile insurance premiums, you will get more choices in the future. Some of the changes made in different types of coverage are:

Medical, Rehabilitation and Attendant Care (for catastrophic injury): Currently for medical and rehabilitation benefits you are getting coverage upto $1,000,000. However, from 1st September, 2010, though the coverage amount will remain the same, but, you will have the option to make more purchase.

Medical, Rehabilitation and attendant care (for non-catastrophic injury): Currently, the coverage for medical and rehabilitation benefits is upto $100,000, whereas, for attendant care, it is up to $72,000. After 1st September, 2010, the coverage for attendant care will be upto $36,000 and for medical and rehabilitation, the coverage will be upto $50,000. However, in the latter section, you will have the option to purchase more upto $1,100,000.

House Keeping and Home Maintenance Expense: If after an auto accident, you are unable to do housekeeping and home maintenance yourself, you can get benefit from this coverage. Though this is applicable to all types of injuries till now, but, after September 1, 2010, this coverage will be applicable for catastrophic injuries only. However, you can purchase this coverage for non-catastrophic injuries as well.

Income Replacement Benefit: Currently under this coverage you get replacement of 80% of your net income, up to a maximum of $400 per week. Under the changed law, the basic coverage will replace only 70% of your gross income, upto a maximum of $400 per week. However, you will get an option to purchase extra coverage for upto $600, $800 or $1000 per week.

Caregiver Benefit: Under this coverage, in the event of any accident and any type of injury, you will get financial support for some expenses, if you are not able to continue being the main caregiver to any dependent in your home, who needs your care. However, after 1st September, 2010, you can get this benefit only if you have catastrophic injury. To get coverage for non-catastrophic injury, you need to make a separate purchase.

Prior to buying the coverage, you should talk to your automobile insurance company and have a detailed knowledge on the coverage you need and what should be the cost for each.

Source: AmPmInsure: We make you Insurance Smart

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