Presenter: Dan Reith April 14 th and 19 th at 7 pm St. Thomas Seniors Centre

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1 Presenter: Dan Reith April 14 th and 19 th at 7 pm St. Thomas Seniors Centre

2 Thank you for choosing Reith & Associates History Dan Reith Family owned Insurance and Financial Services Brokerage 2016 Top 30 in Canada 2015 Young Broker of the Year Crystal Underhill St. Thomas Chamber Master s Award 2014 Brokerage of the Year IBAO Principal Broker Lead Property and Casualty team

3 Importance of Today s Presentation 1. Auto Insurance is a complex insurance product 2. Regulated Any change is mandated and/or approved by Provincial Government. - Loss of Competition and product innovation 3. Provide some clarity to the coming changes

4 General Rule Changes 1 2 Changes to PAC Fees For annual policies maximum of 1.3% For 6-12 month policies maximum of 0.65% For policies less than 6 months maximum of 0.22% Changes to Comprehensive Deductible The standard deductible has been amended from $300 to $500.

5 3 Introduction of a minor accident A minor accident cannot be used for underwriting and it cannot be charged for if all of the following apply: The accident occurs on or after June 1 st, The cost of damage to each automobile does not exceed $2,000 and is paid by the at-fault driver. There are no personal injuries sustained as a result of the accident. No payment is made by any insurer for damages to the automobile or property. No other minor accident on the policy in the prior 3 years.

6 TYPES OF COVERAGE If you own a vehicle in Ontario, you re required by law to purchase coverage in case an accident occurs. At minimum you must carry third party liability, accident benefits, direct compensation property damage and uninsured automobile. You have the option to increase limits and purchase additional accident benefit coverage to protect your lifestyle.

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8 OPTIONAL COVERAGE COLLISION COMPREHENSIVE ALL PERILS LOSS OF USE RENTAL CAR ROAD SIDE ASSISTANCE

9 To help stabilize rates, the Ontario government has implemented changes to auto insurance. Several measures are aimed at reducing fraud and abuse of the system, which increase premiums. As your lifestyle changes, so do your coverage needs. Regular reviews of your policy will ensure you have the coverage best-suited to your needs. Auto insurance coverage can be confusing. Your broker/advisor will explain important details, review costs of increasing coverage and help you make informed decisions. We will ask the right questions to provide an affordable solution to meet your needs and expectations.

10 Three examples of Lifestyle Questions How much do you make a year? You may want to consider increasing your Income Replacement Benefit to $600, $800, or $1,000. $30,000 = $600/week $45,000 = $800/week $60,000 = $1,000/week Are there people in your life who depend on you financially or for care (children, elderly, or disabled)? Consider extending your Caregiver Benefit and/or adding a Dependent Care Benefit. Does your employer provide a Group Insurance Plan? Talk to your administrator to find out what you re covered for and consider increasing your Medical Rehabilitation Benefit. Most benefit packages are limited to $500 a year per practitioner, and OHIP doesn t cover things like occupational therapy, private nursing and psychology.

11 THREE TYPES OF ACCIDENT BENEFIT LOSSES 1. Minor Injury Example: Sprains, whiplash Limit is $3500 unless compelling evidence from a doctor 2. Serious Example: Broken bones, severe strains Disrupt quality of life for prolonged period of time 3. Catastrophic Example: Loss of a limb, Paraplegic, Brain Injury, Impairment of the whole person

12 ACCIDENT BENEFITS COVERAGE PRIOR TO JUNE 2016 AS OF JUNE 2016 ENHANCEMENTS Caregiver Benefit Reimbursement to hire someone to care for your dependents. Up to $250/week for first dependent, $50/week for additional dependents (Catastrophic Injuries Only) No Change Extend benefit to cover Serious + Minor Injuries (Not Just Catastrophic) Caregiver Non-Earner Benefit time limit has been reduced to two years This used to be a life benefit with a payment reduction at the age of 65 Who does this effect? Students, stay at home parents and seniors *This change is effective on any claims June 1st 2016 or after regardless of your renewal date.

13 ACCIDENT BENEFITS COVERAGE PRIOR TO JUNE 2016 AS OF JUNE 2016 ENHANCEMENTS Housekeeping and Home Maintenance Expenses Reimbursement for someone to carry out your household responsibilities. Up to $100/week (Catastrophic Injuries Only) No Change Extend benefit to cover Serious + Minor Injuries (Not Just Catastrophic) Income Replacement Benefit A weekly income up to $400; begins one week after the accident occurs. 70% of gross income up to $400/week No Change Increase up to $600, $800 or $1,000/week Dependent Care Benefit Reimbursement for additional expenses to care for your dependents if you re employed and injured from a car accident. Not Provided No Change Purchase up to $75/week for first dependent and $25/week for additional dependents (max $150/week)

14 ACCIDENT BENEFITS COVERAGE PRIOR TO JUNE 2016 AS OF JUNE 2016 ENHANCEMENTS Death and Funeral Benefit A lump sum payout to your spouse and dependent(s); a second lump sum payout to cover the cost of funeral expenses. $25,000 to spouse; $10,000 to each dependent Up to $6,000 for Funeral No Change Increase to $50,000 for spouse; $20,000 for each dependent. Increase to $8,000 for funeral Indexation Benefit Adjustment of benefits to account for changes in inflation. Not Provided No Change Adjust annually according to the Consumer Price Index of Canada. Tort Deductible The amount of deducted from a settlement or court award for pain and suffering. $36,500 deductible No Change Reduce deductible to $10,000 regardless of annual indexation.

15 ACCIDENT BENEFITS COVERAGE PRIOR TO JUNE 2016 AS OF JUNE 2016 ENHANCEMENTS Medical, Rehabilitation and Attendant Care Benefit Medical + Rehabilitation: Reimbursement for reasonable, necessary medical and rehabilitation expenses like physiotherapy not covered by OHIP or Group Insurance Plans. Attendant Care: Reimbursement for an attendant to look after you either at home or within a healthcare facility Non-Catastrophic Injuries: Minor injuries (sprains, whiplash) + Serious injuries (broken bones, severe strains). Catastrophic Injuries: Loss of a limb, para/quadreplegic. $50,00 for Medical + Rehabilitation (for non-catastrophic Injuries). $36,00 for Attendant Care (for noncatastrophic Injuries) $1,000,000 for Medical + Rehabilitation (for catastrophic Injuries) $1,000,000 for Attendant Care (for catastrophic Injuries) $65,000 total for Medical, Rehabilitation and Attendant Care (for Non-Catastrophic Injuries) $1,000,000 total for Medical, Rehabilitation and Attendant Care (for Catastrophic Injuries) Increase to $130,000 (for Non-Catastrophic Injuries) Increase to $2,000,000 (for Catastrophic Injuries) Increase to $1,000,000 (for Non- Catastrophic Injuries) & Increase to $2,000,000 (for Catastrophic Injuries) To total $3,000,000

16 Medical, Rehabilitation and Attendant Care Benefit How far does your $1,000,000 in coverage go? Attendant care: Example: Average cost of in-home care is $6,000/month Limit would be exhausted in 13 years Average Cost of a Catastrophic Loss $25,000 - $100,000/year in medical and rehabilitation alone Limit could be exhausted in 10 years

17 Medical, Rehabilitation and Attendant Care Benefit For accidents on or after June 1 st 2016 Duration of payment coverage has been reduced from a 10 year time limit to a 5 year time limit Those involved in an accident who are under the age of 18 are able to claim until there 28 th birthday

18 Did you know if you're injured in a car accident, OHIP doesn't cover expenses like:

19 What are my options? 1. Purchase enhanced coverage offered through the basic Ontario automobile policy Limited 1. This coverage, basic or enhanced is only a secondary payor which may limit your ability to collect relative to cost of extra coverage 2. Benefits only respond if injury occurs in an AUTO accident 3. The enhanced benefits are limited and may not meet your actual needs and expectations 2. Co-Ordinate your personal benefits 3. Purchase additional private benefits coverage that actually meets your needs

20 Benefits Coordination Service Our benefits team will review what you have; determine what you need through our Discovery Process and make appropriate recommendations with pricing

21 Thank you for choosing Reith & Associates!