According to an expert, drivers in Ontario may save up to 20% on insurance costs. Is it worthwhile, though?
Dell Drivers:May Save Up to 20% On Insurance Costs.
Although there may be a way to save some money(opens in a new tab) beginning in the New Year, some experts advise against it.
Drivers in Ontario pay some of the highest insurance premiums in Canada. Direct compensation property damage (DCPD), which shields auto owners from expenses associated with vehicle damage from collisions in which they are not at fault, will allow drivers to “opt out” starting in January.
You cannot sue if another driver hits you or have damaged parts replaced in your car if you don’t have DCPD coverage and are involved in an accident. a crash.
“In certain situations, you may be able to save five, ten, or even twenty percent,” Ratesdotca(opens in a new tab) insurance expert Daniel Ivans said to CTV News Toronto.
“It really depends on the vehicle you are driving and the company you are insured with.”To receive local alerts on your device, download our app (opens in a new tab).
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Receive the most recent local news directly in your inbox. Before deciding to refuse DCPD coverage, drivers should carefully consider their options, advises Anne Marie Thomas of the Insurance Bureau of Canada.
Thomas continued, “It’s about weighing your position and your level of risk and your comfort with that. This coverage provides you with a lot more protection than just damage to your vehicle.”
“If you own an older car that isn’t worth much, you might think about cancelling your DCPD coverage, but even in that case, Thomas said it might not be worth the risk.
In addition to being responsible for the costs of repairs, drivers with DCPD coverage in an accident will also be responsible for expenses like towing, vehicle storage, and rental cars that are typically covered by insurance.
According to the provincial government, the modification could help owners of older vehicles and is intended to give consumers more options.
A Ministry of Finance spokesman told CTV News last month, “This is an important change the government is making to give drivers more options.”
In 2023, insurance premiums in Ontario increased by approximately 12 per cent compared to 2021, with an average premium of $1,766 according to a May report by Ratesdotca.
In the Greater Toronto Area (GTA), premiums are especially expensive; in Vaughan, Richmond Hill, Mississauga, Toronto, and Brampton, they can exceed $2,000.
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The Ontario NDP’s auto insurance critic, MPP Tom Crevice, stated on Monday on CTV News Toronto that the province should cap insurance rates if it truly wanted to lower drivers’ costs.
He emphasised that decreasing resident coverage is not the solution, saying instead that the regulator needs to step up and cap the amount of profits that they’re making off the backseat of drivers, who were being gouged and are paying the highest rates of anyone.
“Governments simply do not want to compete with these record-profiting insurance companies.”
The modification is a part of a larger, multi-year plan that was first unveiled in 2019 and includes enhancements to rate regulation, electric proof of insurance, and the ability for insurance companies to provide more options and discounts. The link opens in a new tab.
Together with uninsured motorist coverage, statutory accident benefits, and third-party liability, a basic auto insurance policy usually includes DCPD coverage.
Using material from Katherine Declarer of CTV News Toronto.
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