Should I Purchase Optional Accident Benefits Coverage?
Automobile insurance can offer peace of mind in the event that you are the victim of a motor vehicle accident. With accident benefits coverage, the idea is that you will receive the medical and rehabilitative goods and services you require, as well as income replacement benefits in case you cannot work as a result of injuries sustained in the accident. Accident benefits coverage is mandatory in Ontario; where there is no identified vehicle, a claim can still be made under the Motor Vehicle Accident Claims Fund.
Unfortunately, many people rely on the standard coverage without a real understanding of how limited it really is, especially since June 1, 2016, when Ontario changed the standard accident benefits coverage. These changes were largely to the detriment of the motor vehicle accident victim and included:
Reducing medical, rehabilitation, and attendant care benefits coverage for non-catastrophic injuries from $86,000 ($50,000 for medical and rehabilitation benefits and $36,000 for attendant care benefits) to $65,000 total (combined);
Reducing medical, rehabilitation, and attendant care benefits coverage for catastrophic injuries from $2,000,000 ($1,000,000 for medical and rehabilitation benefits and $1,000,000 for attendant care benefits) to $1,000,000 total (combined);
Reducing the duration of non-earner benefits from lifetime (subject to the insured’s continued ability to meet the test) to two years from the date of the accident; and
Narrowing and redefining “catastrophic impairment” and making it more difficult to access enhanced accident benefits coverage.
Importantly, it is possible – and even advisable – to purchase optional coverage, for instance:
Increasing medical, rehabilitation, and attendant care benefits coverage for non-catastrophic injuries to $130,000 or $1,000,000;
Increasing medical, rehabilitation, and attendant care benefits coverage for catastrophic injuries to $2,000,000; and
Increasing the maximum weekly amount of income replacement benefits from the standard $400 to $600, $800, or $1,000.
Finding yourself injured after a motor vehicle accident can be stressful enough without worrying about rationing your receipt of accident benefits. The best way to give yourself peace of mind that you and your dependants will have a strong safety net is therefore to purchase optional benefits.
