How well are you protected if you get into a car accident? Maybe not as well as you think.
If you find this number shocking, you wouldn’t be alone. Very few people know about the deductible, according to Nainesh Kotak, founder of Kotak Personal Injury Law. At the same time, the standard income replacement benefit on your Ontario car insurance policy, which provides a weekly benefit if you’re unable to work due to a car accident, is 70 per cent of a person’s gross income, up to $400 a week — unchanged since 1999, despite soaring inflation.
In order to get money for pain and suffering in the first place, a victim has to prove they have a “permanent impairment of important bodily, mental or psychological function,” Kotak explains, which is subject to the deductible that the insurance company keeps. The FRSA also determines the monetary threshold required to eliminate the deductible in damages awarded to car accident victims and this threshold also continues to increase, Kotak says. In 2023 the threshold for nonpecuniary damages increased to $147,889 from $138,343.86 in 2022.
Can insurance is so badly flawed here in Ontario. The insurance companies lobbied for this deductible, haven’t lowered premiums and are now reducing benefits. You consumers are being hosed here.
Insurance should be optional, though guilty party should be forced to fully compensate the victim if guilty party comes short they should borrow money and repay it over course of their lifetime if they die before loan is repaid their next kin should be held liable for repaying it
SCAM
Usual corruption that's allowed in the auto insurance industry. Only in Ontario. Thank uncle fordnation
Insurance companies and agents are blood sucking parasites. Worthless scum
The whole system needs an overhaul. Rules need to be simple instead of this web of red tape and rules that only personal injury lawyers would understand