In September 2010, the Ontario Government through the Financial Services Commission of Ontario made significant changes to Ontario insurance plans. Not only did FSCO significantly reduce the accident benefits available to Ontario drivers, but it also introduced a 2 tiered approach for Ontario drivers. All Ontario drivers are required to purchase insurance. How much insurance you purchase is up to you.
Top-up accident benefits
There are several “top-ups” that can be purchased in the event that you or a loved one is in an accident in Ontario. Indexation is an additional Ontario accident benefit that can be purchased. This optional benefit provides for an automatic adjustment over time of several different accident benefits including income replacement benefits, medical and rehabilitation benefits, attendant care benefits and other Ontario accident benefits. The indexation of these accident benefits is determined by the changes in inflation based on the Consumer Price Index of Canada. Basically, it’s an extra insurance policy that ensures that your benefit dollars keep up with the times.
Accident Benefits and Indexation
In other words, a dollar today is not going to be worth what a dollar tomorrow will be worth. As a personal injury lawyer, I know how important Ontario accident benefits are to my clients. Oftentimes, people are unable to return to their previous lives before the accident and are left with their insurance claim and accident benefits to carry them throughout the rest of their lives. I know that Ontario insurance premiums are already very high, so paying even more is frustrating; however, if ever you need to access these accident benefits, you will need them.
Our team is constantly meeting with people who regret not having “topped up” their insurance coverage. It’s a personal decision and not a decision that should be taken lightly.
Something to think about…
