Insurance companies are in business to make money.  Insurance is a commodity that people buy.  In Ontario and many other places, it is the law that you have to have insurance if you wish to drive.  As a consumer, it is your job to shop for insurance to get the very best price that you can.  In this industry, shopping around can save you hundreds of dollars a year.

Insurance companies have it good because they do not have to provide a product.  In essence, they are selling a commodity based on something that may happen.  The odds of you getting into an auto accident are very slim, and the chances of you being injured are even slimmer.  In so saying that, if in the event that you are injured, the insurance companies are supposed to provide coverage for these costs.

The forthcoming changes that have been proposed Financial Services Commission of Ontario Report on the Five Year Review of Automobile Insurance (March 31st, 2009) aim to change the legislation as it currently stands.  Some of the highlights are as follows:

•  If you are unfortunate enough to be in a car accident, your cost coverage for medical rehab treatments will drop from $100,000 down to $25,000.  These treatments include but are not limited to psychology, speech-language pathology, occupational therapy, physiotherapy, and drug treatments.  None of these are covered by OHIP.  Once you go past the $25,000 allocated, you will have to burden the cost of these treatments yourself.  Needless to say, your premiums will not be reduced any.
• As it currently stands, should you be involved in an accident and require home maintenance support, housekeeping, or caretaking, these costs are covered.  The insurance industry wants to make these services optional.  Needless to say, your premiums will not be reduced any.
• One of the proposals in the report is to have your family doctor manage all of your assessments and treatments.  While I personally do not have a problem with this, I am not in the medical field.  However, those who are in the medical field would understand better the amount of red tape that this creates.  Citing an example from the e-mail that I received, if you need a new pillow based upon a recommendation from your occupational therapist, your family doctor will now have to fill out a mountain of paperwork to get it processed.
• With the new legislation, the insurance providers independent examiner (ie, their doctor) will have the final say on any treatment that you need.  It will not be a doctor of your choice.  You have the right to chose whatever doctor you wish, but should the insurance company disagree with the treatment they will be able to send you to a doctor of their choosing who will have the final say.

I would like to think that I am an informed person, but I knew nothing of this until my cousin sent me an e-mail yesterday.  The FSCO will decide which recommendations to pass into law on May 15th, therefore that is the cutoff date to make your voice heard.  To that end, here is a link to a letter that you can send to Premier Dalton McGuinty.

In a future article, I will post some strategies that you can use to save money on automobile insurance.  Never assume that the insurance salespeople are acting in your best interest.  Their motivation is not altruistic, it is profit.  The more you pay, the more commission they make.  It is really that simple.