The Danger of Auto Renewing
On June 1st the auto insurance reforms took effect, and are fully upon us now. If you have car insurance, by now you have received at least one notice about the changes to your insurance policy. These changes take effect when you go to renew your policy or should you be purchasing a new one.
How it Works
That means, policies purchased or renewed on or after June 1st, 2016 will automatically have the new lower standard benefits that the government has implemented. Policies purchased or renewed before June 1st however, will not change until it is time for them to be renewed. Meaning if you purchased or renewed your policy on May 29th, 2016 the changes would not take effect until your next renewal date. These reforms are designed to give you, the customer, more control over the coverages that you need, and it will also ensure that car insurance is more affordable for all. Yet the changes also come with the daunting consequence of losing more coverage, so it’s important to understand what exactly is changing in these reforms.
As exciting as this all is (well, I think saving money can be exciting), many policy holders simply auto renew their policies without asking questions about the changes, without learning more about the reforms and without shopping around for the best rates available. In fact, the Financial Services Commission of Ontario (FSCO) reported that more than half of Ontario drivers simply paid the new renewed premium and went on their merry way.
What Should You Do?
FSCO is encouraging all Canadians to be more proactive before renewing their policies. They recommend that you:
- Read up on the reforms.
- Compare your new policy to your old one.
- Call your insurance representative and ask questions about your policy.
- Ask your broker about shopping around for possible better rates.
The new reforms are designed to make insurance more affordable, but will the changes reduce something that is important to you? Only you know what coverage best suits your needs. Meeting with your insurance provider will help you better understand what you are covered for, and will help your provider better understand what it is you want covered. Bottom line, you want to ensure that you are well protected in the event of an accident.
Your policy is changing, and chances are your rates will too – but do not auto renew!
Simply put, the danger of auto renew is that you may not be getting the coverage you want, and you may be paying too much for your car insurance. Read up on the reforms here at the Insurance Bureau of Canada. Call McDougall today, we are here to help you get the insurance coverage that best suits your needs.
or visit McDougall Insurance here