Lower auto insurance premiums will lead to reduced benefits

While this week’s Ontario budget may include measures to gradually lower auto insurance premiums, the result will be fewer benefits for many of those injured in car accidents – similar to what happened after a related debate back in 2010, Toronto critical injury lawyer Patrick Brown tells the Toronto Star.

“The goal then was a 10 per cent reduction in premiums, but what happened was that the industry said that we had this really inflated system that was costing too much, and that we had to start reducing the amount of benefits that was available to people,” he explains.

“Every step of the way, there has been a reduction in benefits,” adds Brown, partner with McLeish Orlando LLP.

In most cases, says the article, a maximum of $3,500 is now available to pay for an accident victim’s medical and rehabilitation costs, down from the $100,000 that was once available.

‘Restricted benefits’

“We now have some of the most restricted benefits in the country,” says Brown. “No other province has this $3,500 limit,” he adds.

Brown says that the big scare right now is the possibility that catastrophic impairment is redefined. “They’re trying to make it harder for people to fall into the catastrophically-injured category . . . it would be absolutely awful for some people,” he says.

While the savings the industry is realizing as a result of the 2010 reforms should be returned to the consumer through premium reductions, says the article, Brown explains that “by no means should this be by reducing the number of accident victims who qualify as catastrophic.”