The Cobra
07-26-2010, 02:21 PM
Premiums unlikely to fall under changes
By Ellen van Wageningen, The Windsor StarJuly 26, 2010true
Cobra.....
Assume the position my Ontario friends, once again the insurance companies across Ontario and indeed Canada have lobbied new laws into effect come Sept 1. Locally, the Windsor - Leamington area has had it`s share of nasty weather as of late with major storm damage re tornadoes, floodings etc. Strange thing is---one company has called the damage an "act of God" and won`t pay a dime to people while other more reputable insurers (LMAO) will at least cover partial losses. One company will cover the failure of relief valves or the failure of sump pumps others won`t----it`s basicly a crap shoot and where do you turn? Your MPP--nope, he was one of the guilties that helped inact the insurance laws in the first place. You are screwed at their mercy.
Now, they`ll get back some of their spent $$$$, not by raising your rates yet again----they`ll drop your coverage!!! Now I`m no whiz kid---but isn`t it the same?
Insurance companies lobby to have laws changed or added at their will----and our politicians constantly line their pockets with that very lobby $$$$ to make the laws that govern the insurance industry---but they don`t. Thanx to a neverending lobby the insurance companies run rampant thru our wallets---and our politicians have made it legal for them to do so. Think about that next election.
The very least the Insurance Company could do would be to send me some flowers, a box of chocolates and a note reading "I hope it was good for you" JMHO
As per The Windsor Star..........July 26,2010
I recently received a notice in the mail from our auto insurance provider about changes that go into effect Sept. 1.
The Ontario auto insurance reforms reduce the minimum mandatory accident benefits consumers must buy and cap medical and rehabilitation benefits for minor injuries at $3,500. The aim of the changes announced late last year is to keep a lid on the cost of auto insurance.
The question the letter from our insurance company didn't answer is whether our premiums will go down when it comes time to renew in December.
Not likely, say two Windsor area insurance brokers.
"I think it's fair too assume there will be no increases for at least a short while," said Wally Chafchak, owner of All Line Insurance Brokers Inc. in LaSalle. Companies have complained that the current medical coverage is too rich for them to continue at existing rates.
Rate changes approved by the Financial Services Commission of Ontario that go into effect Sept. 1 show an average decrease of one per cent. (Auto insurance rates, which had been dropping since 2003, started to creep up again as of 2007.)
But keep in mind that the minimum coverage for accident benefits for new policies and renewals after Sept. 1 will be less, says Stephen Savage, president of Southland Insurance Brokers Inc. If consumers want to increase those benefits to the old level, it will cost more.
Chafchak says his phone has been ringing steadily since insurance companies started sending out notices advising clients of the coming changes.
"You'll see the full extent of the changes when your renewal notice comes," says Savage.
Here are some of the highlights:
- The limit for medical and rehabilitation expenses has been reduced to $50,000 for non-catastrophic injuries. Consumers have the option of increasing that to $100,000.
- The limit for attendant care expenses for non-catastrophic injuries drops to $36,000, with the option of increasing it to $72,000.
- Caregiver, housekeeping and home maintenance coverage for catastrophic injuries only is part of the basic coverage. It will cost extra to get this for non-catastrophic injuries.
- The standard deductible when suing for pain and suffering remains at $30,000, but can be reduced to $20,000 for a higher fee.
The Financial Services Commission has a good summary of all the changes on its website, fsco.gov.on.ca, and Dominion of Canada General Insurance has a helpful tutorial at mychoicecarinsurance.ca that includes statistics on accidents.
The reforms are a good reason for consumers to carefully review their policies with their broker or agent, say Chafchak and Savage.
No one wants to contemplate what could happen if they are injured or killed in an accident and most consumers cringe at prospect of paying more than the minimum, says Chafchak.
But they should at least consider what could happen and ensure that they are covered for what they would need.
Savage advises paying close attention to coverage for life insurance, medical costs, income replacement and death benefits.
"It's a very individual decision now that customers will have to make," says Chafchak.
evanwageningen @thestar.canwest.coand Ellen on Windsor Business at windsorstar.com
By Ellen van Wageningen, The Windsor StarJuly 26, 2010true
Cobra.....
Assume the position my Ontario friends, once again the insurance companies across Ontario and indeed Canada have lobbied new laws into effect come Sept 1. Locally, the Windsor - Leamington area has had it`s share of nasty weather as of late with major storm damage re tornadoes, floodings etc. Strange thing is---one company has called the damage an "act of God" and won`t pay a dime to people while other more reputable insurers (LMAO) will at least cover partial losses. One company will cover the failure of relief valves or the failure of sump pumps others won`t----it`s basicly a crap shoot and where do you turn? Your MPP--nope, he was one of the guilties that helped inact the insurance laws in the first place. You are screwed at their mercy.
Now, they`ll get back some of their spent $$$$, not by raising your rates yet again----they`ll drop your coverage!!! Now I`m no whiz kid---but isn`t it the same?
Insurance companies lobby to have laws changed or added at their will----and our politicians constantly line their pockets with that very lobby $$$$ to make the laws that govern the insurance industry---but they don`t. Thanx to a neverending lobby the insurance companies run rampant thru our wallets---and our politicians have made it legal for them to do so. Think about that next election.
The very least the Insurance Company could do would be to send me some flowers, a box of chocolates and a note reading "I hope it was good for you" JMHO
As per The Windsor Star..........July 26,2010
I recently received a notice in the mail from our auto insurance provider about changes that go into effect Sept. 1.
The Ontario auto insurance reforms reduce the minimum mandatory accident benefits consumers must buy and cap medical and rehabilitation benefits for minor injuries at $3,500. The aim of the changes announced late last year is to keep a lid on the cost of auto insurance.
The question the letter from our insurance company didn't answer is whether our premiums will go down when it comes time to renew in December.
Not likely, say two Windsor area insurance brokers.
"I think it's fair too assume there will be no increases for at least a short while," said Wally Chafchak, owner of All Line Insurance Brokers Inc. in LaSalle. Companies have complained that the current medical coverage is too rich for them to continue at existing rates.
Rate changes approved by the Financial Services Commission of Ontario that go into effect Sept. 1 show an average decrease of one per cent. (Auto insurance rates, which had been dropping since 2003, started to creep up again as of 2007.)
But keep in mind that the minimum coverage for accident benefits for new policies and renewals after Sept. 1 will be less, says Stephen Savage, president of Southland Insurance Brokers Inc. If consumers want to increase those benefits to the old level, it will cost more.
Chafchak says his phone has been ringing steadily since insurance companies started sending out notices advising clients of the coming changes.
"You'll see the full extent of the changes when your renewal notice comes," says Savage.
Here are some of the highlights:
- The limit for medical and rehabilitation expenses has been reduced to $50,000 for non-catastrophic injuries. Consumers have the option of increasing that to $100,000.
- The limit for attendant care expenses for non-catastrophic injuries drops to $36,000, with the option of increasing it to $72,000.
- Caregiver, housekeeping and home maintenance coverage for catastrophic injuries only is part of the basic coverage. It will cost extra to get this for non-catastrophic injuries.
- The standard deductible when suing for pain and suffering remains at $30,000, but can be reduced to $20,000 for a higher fee.
The Financial Services Commission has a good summary of all the changes on its website, fsco.gov.on.ca, and Dominion of Canada General Insurance has a helpful tutorial at mychoicecarinsurance.ca that includes statistics on accidents.
The reforms are a good reason for consumers to carefully review their policies with their broker or agent, say Chafchak and Savage.
No one wants to contemplate what could happen if they are injured or killed in an accident and most consumers cringe at prospect of paying more than the minimum, says Chafchak.
But they should at least consider what could happen and ensure that they are covered for what they would need.
Savage advises paying close attention to coverage for life insurance, medical costs, income replacement and death benefits.
"It's a very individual decision now that customers will have to make," says Chafchak.
evanwageningen @thestar.canwest.coand Ellen on Windsor Business at windsorstar.com