Jun 27, 2018 in News Accident Benefits Claims

Accident Benefits Claims: Should insurance coverage for minor injuries be optional?

June 2016 is a landmark month for every car accident lawyer in Ontario. At that time, the provincial government introduced significant cuts to mandatory accident benefits coverage, a change that sparked an outcry from victims’ advocates and left most drivers less protected. The policy was part of an ongoing effort to reduce sky-high auto insurance premiums in the province; today, Ontarians continue to pay some of the nation’s highest rates.

Under the new accident benefits schedule, maximum mandatory medical, rehabilitation, and attendant care benefits were reduced by more than $20,000 for non-catastrophic injury victims and by $1-million for victims of catastrophic injuries. For a clearer picture of the changes that came into effect, take a look at our complete accident benefits coverage chart.

With Ontario drivers still paying exorbitant insurance premiums, industry experts are looking for new ways to reduce costs. One suggestion is to offer “greater choice” to consumers by allowing them to opt out of benefits for minor injuries.

This solution was put forward by David Marshall in his influential report Fair Benefits Fairly Delivered: A Review of the Auto Insurance System in Ontario. Though Marshall didn’t explicitly endorse the measure, he recommended that it be studied further.

“There are several drivers who, due to their youth or circumstances, would like to carry less insurance that the standard policy,” he wrote, according to Canadian Underwriter. “After protecting others through a minimum liability insurance, a sensible system of consumer choice whereby a person may consciously take less auto insurance and save money should be explored.”

This approach would, in fact, lower premiums for some insureds. Unfortunately, critics believe that the drivers who are most likely to waive optional benefits are also those least likely to be able to afford treatment for their injuries. The goal of accident benefits coverage, Marshall wrote, “is to provide a guaranteed safety net for those injured in auto accidents.” It’s unclear how optional coverage would contribute to that aim.

Every car accident lawyer in Ontario can agree that lowering auto insurance premiums is an important goal for the provincial government. However, restricting accident victims’ access to critical medical, rehabilitation, and attendant care will, in the long run, benefit nobody.

If you or a member of your family has been injured in an automobile accident, contact Neinstein Personal Injury Lawyers today to speak with an experienced car accident lawyer in Ontario. Our team can help you understand your legal options and provide access to some of the province’s best medical resources. Call now to set up your free, no-obligation consultation.