The Ontario Insurance Act regards all the motor vehicle owners and drivers in Ontario. The amendments added over the years to this act can have varying effects on car accident deductibles for those involved in one.
In this short article, we go over the amendments to the Ontario Insurance Act and how they might interfere with your post-accident deductible. Read on to discover the Pace Law Firm tips on how to increase your protection against non-deductible charges!
Amendments to the Ontario Insurance Act that Affect the Motor Vehicle Accident Deductible
Policyholders should ensure optimal protection in the event of a car accident, regardless if it’s their fault or not.
The Government of Ontario has made amendments to the Ontario Insurance Act to provide easy access to reasonable compensation for injuries, pain, and other types of suffering for policyholders involved in some way or another in motor vehicle accidents.
The amendments to the Ontario Insurance Act came into effect on August 1st, 2015, and determined that insurance companies should have lower policy costs.
What the Amendments Mean to You
In the event of a car accident, the victims do not have rights to the entire compensation amount that insurance companies often provide for pain and suffering and loss of enjoyment of life. Instead, they have to provide the insurance company with a deductible, which is a sum deducted from all awarded non-pecuniary damages.
Policyholders who have sustained injuries in a car accident may even have to pay the insurance company legal costs if the award doesn’t exceed the deductible.
Before 2015, the deductible was $30,000. However, from 2019, it increased to $38,818.97, and subsequently to $39,556.53, which was valid until December 31st, 2020.
Therefore, if you are a victim of a car accident and receive $200,000 for your pain and suffering, you will only have access to $160,443.47.
It also means that if you are awarded $39,000 for your pain and suffering, you will not receive any compensation because the amount is lower than the deductible. Furthermore, you might even have to pay the insurance company for the expenses incurred during the trial.
Another amendment has set the deductible for family members to $19,409.49 in 2019. Later, it was increased to $19,778.27, which was effective until December 31st, 2020. This deductible can only be waived if the claim exceeds $65,926.45.
How to Increase Your Protection
Before signing or renewing a car insurance policy, take the time to study all the benefits and coverage conditions that the insurer puts before you. Doing your due diligence can help you receive compensation in the future. This way, you will not have to suffer financially because of the deductible for motor vehicle accidents.
When studying the insurance policy, look for optional coverage that should offer you the optimal protection in case of an unfortunate vent.
If you are renewing the policy, you don’t have to go through the entire document. Instead, check the important changes, which the insurer should provide in a succinct and clear form. Discover which clauses have been eliminated and if there are any new options available for deductibles.
You should make an ultimate goal out of understanding all the options that come with your insurance policy. They vary in the number of benefits, compensations, and rights.
If your old insurer proposes a new policy that you find unreasonable, do not be afraid to look for a new insurance company. There is an open market where companies compete fiercely to sell as many insurance policies as possible.
If the policy is not clear to you, the best thing to do is employ the services of a legal representative who can decipher all the small font writing. With sound legal advice by your side, you can increase the benefits you get in case of a motor vehicle accident.
Here at Pace Law Firm, we take great pride in providing our customers with adequate legal advice and support. In the unfortunate event that you sustain injuries in a car accident, you can count on our legal experts for legal services.