Ontario budget proposes changes for auto insurance

Published: April 12, 2019

Updated: April 17, 2019

Author: Luke Jones



Ontario’s government has set out plans to make credit scores one determining factor in the province’s auto insurance rates. Additionally, in the 2019 Budget, the government proposed a doubling of coverage for catastrophic impairment.

Finance Minister Vic Fedeli detailed the changes when the budget was tabled last week.

“Drivers should have the choice to lower their premiums by allowing insurers to consider their credit history, or by agreeing to use preferred providers of auto repair or health care services,” the budget document says.

Elsewhere in the budget, the Ontario government pledged to introduce a “Driver Care Plan” which would bring back the old $2 million limit for accident benefits for people catastrophically injured. Under previous injury laws in Ontario, there were two $1 million limits on catastrophic impairment. In 2016, the province ushered in reforms that cut the limit to a single $1 million limit for all medical, attendant, and rehab care.

While the government has confirmed a $2 million limit will be re-introduced, no details have been given on whether this will be a single fund or two separate limits.

Elsewhere in its 2019-2020 budget, the Ontario government said it is seeking reforms in auto insurance, including more coverage options.