What You Should Ask the Politicians About Automobile Insurance

TORONTO (October 5, 2011) – If you’ve recently received your auto insurance renewal, you probably have more than a few questions for the candidates running in the provincial election.

Why are premiums up, and benefits down?

The Liberals passed regulations last year that allowed insurance companies to cut standard benefits. This was supposed to help stabilize rates. But the plan has backfired.

Rates in Ontario increased 6.4% in the second quarter of 2011 compared to the same period a year ago, according to Kanetix, an online insurance quote comparison service. This is more than double the rate of inflation.

At the same time, someone in a serious accident will now receive only $50,000 of standard medical and rehabilitation services, compared to $100,000 before the Liberal changes.

If it costs more than $50,000 to recover from a serious accident, what happens?

You’ll likely end up paying these extra costs out of your own pocket – costs that could amount to tens of thousands or even hundreds of thousands of dollars. Why? Because many of the services you may need are simply not covered by OHIP.

Can consumers protect themselves by purchasing additional insurance? 

Yes, but few people do. A recent survey by the Financial Services Commission of Ontario (FSCO) found that only slightly more than 1 per cent of policyholders have bumped up their medical and rehabilitation coverage. Most motorists in the province are sticking with the standard coverage.

Effectively, that means the vast majority of consumers have far less protection now than they did a year ago.

Is it true that insurance companies can now deny a request for assessment or treatment without having to obtain a second medical opinion?

Yes, this was part of the Liberal reforms. An insurance adjuster with no medical training now decides whether or not you need the rehabilitation therapy or equipment, and increasingly they are denying these requests.

A survey conducted by the Alliance of Community Medical and Rehabilitation Providers found that more than two-thirds of the respondents report the denial rate is now 30% or more, compared to 10% or less a year ago.

How do we know that the insurance companies’ rate hikes are justified?

We don’t know because the insurers do not have to publicly disclose financial and operations data for their auto insurance lines. The Alliance is recommending more openness and transparency in the system.

Ask the questions. Demand answers.

The Alliance represents approximately 80 companies and about 3,500 health care providers including physiotherapists, occupational therapists, speech language pathologists, chiropractors, psychologists, rehabilitation therapists, social workers, personal support workers and case managers. It is these individuals who are the primary providers of healthcare and rehabilitative services to Ontarians who are injured in automobile accidents.

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For further information, visit www.ontariorehaballiance.com

To arrange an interview, contact:

Niki Kerimova
PR POST
416-777-0368