If you have not already received it, you will shortly be getting in the mail the first of three mailing from your Ontario Auto Insurance carrier. These mailings are mandated by the Financial Services Commission of Ontario (FSCO).

The new Ontario Auto Insurance program is being put in place because the cost of claims for minor injuries, like sprains and whiplash, have gone up substantially and FSCO wants to make coverage changes to keep costs down. The changes to auto insurance in Ontario are effective for policies purchased or renewed after Sept. 1, 2010.

Changes being made to the current standard include

• For non-catastrophic injuries, there is a reduction by half of the $100,000 coverage for medical and rehabilitation benefits and $72,000 coverage for attendant care benefits

• For housekeeping and home maintenance expenses, coverage of up to $100 per week is restricted to catastrophic injuries

• For income replacement benefits, coverage is changed from 80% of net income up to $400 per week to 70% of gross income up to $400 per week

Options to purchase extra coverage include:

• Inflation indexing

• Weekly limit for income replacement benefits can be increased by up to $1,000

• doubling in death and funeral benefits to $50,000 to an eligible spouse and $20,000 for each dependent

The Insurance Bureau of Canada (IBC) has a chart of all the changes on their website. http://www.ibc.ca/en/C...hart.pdf

These changes may have an unanticipated effect on what amount you will receive in the event of an automobile accident so you should be reviewing the mailings you receive and discussing your personal situation with you Insurance broker.

Both the IBC and understandingmyinsurance websites have excellent reference material to help you with your decision making.