The Government of Canada has issued many new changes regarding car insurance in Canada, which are scheduled to be implemented by the Ontario government and will enable drivers to save money, but on the other hand, some experts have confirmed that this step will be inappropriate.
The Canadian government explained that it will move forward with the plan to allow drivers to withdraw from some insurance plans, after it recently revealed its budget for the year 2024.
Drivers will continue to pay the costs of mandatory car insurance, as this insurance covers personal and health injuries.
The new changes are also supposed to give drivers the freedom to opt in or opt out of some other optional benefits, including property damage, death benefits, visitor expenses, income replacement and home maintenance benefits.
Reports indicate that the hope of these changes is to help drivers save money, but experts have expressed concern that these new changes may leave some people vulnerable.
For her part, Mary Kelly, head of the Insurance Department at the College of Business and Economics at Wilfrid Laurier University, confirmed that she does not think this matter is logical at all. The people who are most likely to choose not to participate are the people who find that there is a huge financial burden in paying insurance premiums. Their own. “I think this is closely related to people who don’t have high salaries.”
It is worth noting that the changes recently revealed by the Ontario government came after drivers in Ontario felt the burden of rising insurance premiums. In 2022, a report by the Auditor General of Ontario found that average insurance premiums increased by 14 percent between 2017 and 2021.
Reports issued by the famous website RateScoreca also indicate that insurance premiums rose by 12 percent from 2021 to 2023.
Reduce paperwork and red tape
In addition to this, the Ford administration is considering mandating that vehicle insurance companies pay for medical and rehabilitative services following an accident, prior to comprehensive health care plans covering the price of these benefits. On top of that, she stated that this policy will be implemented for any and all automobile collisions, irrespective of the injuries that were experienced.
It is said in the budget that this will assist in "reducing paperwork and red tape for patients and their healthcare providers."
"This is something we are committed to because...we want insurance to be affordable for many," Bethlenfalvy said to reporters during a press conference on Tuesday. A press conference was held on Tuesday.
