Ontario is planning to make certain auto insurance coverage optional so it's 'more affordable'
Changes to Ontario auto insurance were announced in the 2024 budget. 🚗
People driving cars on Highway 401 in Toronto.
You could pay less for auto insurance in Ontario soon as the provincial government has proposed new measures to make it "more affordable."
That includes changing certain auto insurance coverage from mandatory to optional.
This was revealed in the new 2024 Budget: Building a Better Ontario put out by Ontario's Minister of Finance Peter Bethlenfalvy on Tuesday, March 26.
In the part of the budget dedicated to keeping costs down, the provincial government outlined what will be done to lower expenses for drivers including changes to auto insurance.
"The government will move forward with auto insurance reforms that would empower Ontario drivers with more affordable options, improved access to benefits and create a more modern system," the government said.
These proposed changes are set to be implemented so drivers can make informed decisions about the insurance coverage options that are available to them.
Mandatory auto insurance accident benefit coverage will continue to apply to medical, rehabilitation and attendant care benefits.
But all other benefits through auto insurance would be optional.
According to the government, this would allow drivers to lower the cost of their insurance premiums by choosing the coverage they need.
For example, if you already have certain coverage through your workplace benefits plan, you wouldn't have to pay for it a second time through your separate auto insurance policy.
Also, the Ontario government has proposed making auto insurance pay for medical and rehabilitation costs related to an automobile accident before extended health care plans do.
That's meant to reduce paperwork and red tape for both patients and healthcare providers.
In the 2024 budget, the provincial government outlined other ways it's making life more affordable for drivers in Ontario.
That includes a plan to ban new tolls on new and existing provincial highways which would apply to the Don Valley Parkway and the Gardiner Expressway in Toronto as well.
Ontario is continuing the fee freeze for driver's licences and Ontario Photo Cards. Also, any increases can only be made through legislation.
It's estimated that this will save drivers $66 million over the next five years when compared to how fees would've increased if there was no freeze.
The provincial government also noted that it saved drivers money by eliminating licence plate renewal fees and stickers.
This article's cover image was used for illustrative purposes only.