By CRM staff
Toronto, Ontario — April 16, 2019 — Ontario’s government is pursuing a new policy meant to radically change the way auto insurance works for the province’s five million drivers.
The new initiative, called the Putting Drivers First plan, was outlined in the Legislature by Tory Finance Minister Vic Fedeli as part of the Spring Budget. It aims to reduce premium costs by providing drivers with more options and reducing the amount insurers spend on claims processes.
“The proposed reforms will give control back to drivers,” the budget says.
According to Ford Government, drivers will soon be able to treat auto insurance like a buffet, allowing drivers to pick and choose the coverage that works best for them, though it is unclear what options will become optional.
It isn’t just drivers, though, who will be given more control. Certain prohibitions on insurers will also be revoked, including one currently preventing them to offer reduced rates to drivers who make use of a preferred repair facility.
Ontario’s drivers may also find themselves in possession of a new piece of identification, dubbed the Driver Care Card. The new chip-and-pin card is expected to simplify the claims process, with insurers loading it with the funds earmarked for repairs or other accident-related expenses.
Among the other proposed changes is an increase in catastrophic claims benefits from $1 million to $2 million, and for electronic proof-of-insurance to be accepted in lieu of paper copies.
