New Auto Insurance Legislation: How Does it Impact You? - Diamond and Diamond Lawyers
Personal Injury Lawyer Toronto | Car Accident Lawyer Toronto

New Auto Insurance Legislation: How Does it Impact You?

On November 20, 2014, Ontario passed the “Fighting Fraud and Reducing Automobile Insurance Rates Act, 2014 (Act).” According to the Ontario Ministry of Finance, “[The intended aim of this Act is to] help the provincial government fight fraud and abuse, reduce costs and uncertainty in the auto insurance system and protect more than nine million licensed drivers across the province.”

The Act’s goals are to keep the auto insurance system fair, reliable and affordable by:

  • Increasing the claims settlement process speed to help injured Ontario drivers.
  • Providing consumer protections specific to towing and vehicle storage.
  • Authority for the province to change the current 60-day period that a vehicle can be stored after an accident.

These changes will help contribute to lower claim costs for insurers and reduce rates for drivers.

The Toronto Star recently posted an article on the new auto insurance legislation and spoke to a member of the Ontario Trial Lawyers association (OTLA).

While the Act provides some new protections to consumers, OTLA argues that the legislation removes a motorists’ right to sue an insurance company for denying their claims.

According to Steve Rastin, president of the OTLA, “We are profoundly disappointed in the government for what they did today” in relation to the clause that replaced the right to sue for denied claims with an arbitration system. He points out that this will be both costly and time consuming.

Rastin and the OTLA support most of what is in the bill, however, a few key points are unacceptable: the right to sue and reduced interest rates for injured claimants.

The then-minority Liberal government agreed to an NDP demand for a 15 per cent cut in car insurance rates over two years in order to get the Ontario provincial budget passed. In the last year, auto insurance rates have dropped 6 percent. While it’s too early to deem the Act a success or failure, despite flaws, it’s a good start in protecting consumers from insurers and reducing rates.

If you find yourself in an accident, Diamond and Diamond Personal Injury Lawyers have the experience in navigating the insurance claims process and helping accident victims get the compensation they deserve. If you’ve been injured, call us on our free injury hotline at 1-800-567-HURT (4878) or contact us here. 

Leave a Reply

 

Need a Lawyer?

We are here 24/7 to address your case. You can speak with a lawyer to request a consultation.

1-800-567-HURT

Get started with a free consultation

OUR TEAM

Get the help you deserve

1-800-567-HURT

Call NOW for a free consultation

 

Diamond & Diamond Ontario Head Office

255 Consumers Road, 5th Floor, Toronto, Ontario

>> Learn More

Diamond & Diamond Alberta Head Office

4246 97 Street NW, Unit 103, Edmonton, Alberta

>> Learn More

Diamond & Diamond British Columbia Head Office

1727 West Broadway, Suite 400, Vancouver, British Columbia

>> Learn More

Barrie

Main Office

168 Bayfield Street

Calgary

Main Office

1331 Macleod Trail SE, Suite 645

Calgary

Branch Office

2713 14 St SW

Calgary

Branch Office

600 Crowfoot Crescent NW #240

Edmonton

Head Office

4246 97 Street NW, Unit 103

London

Main Office

256 Pall Mall St, Suite 102

Oakville / Mississauga

Office

2939 Portland Drive, Suite 200

Oshawa

Consultation Office

50 Richmond Street E, Unit # 108 B

Ottawa

Main Office

955 Green Valley Crescent, Unit 315

Sudbury

Main Office

31 Larch Street, Unit 300

Surrey

Main Office

1104 – 13737 96 Ave, Surrey, BC V3V 0C6

Toronto

Head Office

255 Consumers Road, 5th Floor

Toronto

Diamond and Diamond | Real Estate Lawyers Toronto

1678 Bloor Street, Suite 302

Vancouver

Head Office

1727 West Broadway, Suite 400

Windsor

Main Office

13158 Tecumseh Rd. E. Unit 3B

Additional Areas Served

© 2021 Diamond and Diamond Lawyers LLP. All Rights Reserved.