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Several changes will be coming into effect for Ontario Auto Insurance in 2016 that could bring car insurance savings to drivers.

One change that benefits consumers is new rules around what minor accidents car insurance companies can use to determine an insurance premium or, issue, renew, or cancel an auto insurance policy.  Under new rules effective June 1, 2016, auto insurers can only use at-fault minor accidents under the following circumstances:

  • Total damages paid for the accident (including damage to the car, or any property) does not exceed $2000
  • No personal injuries are sustained.
  • No other insurer makes a payment to any vehicle or property due to the accident.

There is one exception, an auto insurance company may consider a minor accident after June 1, 2016, if the vehicle had been involved in more than one minor accident in the past three years where the driver was determined at fault.

This is a positive change that will help many drivers.  The result will be that after June 1, 2016, insurance companies will not be able to charge drivers for a one-time minor fender bender, which will ultimately save Ontario drivers on their car insurance rates in the long run.

isure insurance is a fully licenced autohome and commercial insurance broker.

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