Regulation - LGIC

Proposed Amendments to Insurance Act Regulation 664 (Automobile Insurance)

Regulation Number(s):
O. Reg. 664 (Automobile Insurance)
Bill or Act:
Insurance Act
Summary of Decision:
Amendments to Ontario Regulation 664 (Automobile Insurance) have been approved.
Further Information:
Proposal Number:
15-MOF013
Posting Date:
May 14, 2015
Summary of Proposal:
Further to the 2015 Ontario Budget commitment to increase consumer protection and help reduce auto insurance costs, amendments to Insurance Act Regulation 664 (Automobile Insurance) will be proposed to:

• Lower the maximum interest rate charged on monthly auto insurance premium payments to 1.3 per cent from three per cent for 12 month policies, with proportional changes to other terms;

• Change the standard deductible for comprehensive coverage to $500 from $300;

• Require that all insurers offer a discount for the use of winter tires; and

• Prohibit premium increases for minor at-fault collisions that meet certain criteria, which may include:

- No charges are laid against at-fault driver;

- Property damage does not exceed $2,000 and the cost of damages is paid by the at-fault driver;

- No personal injuries; and

- No claim was made to the insurer.
Contact Address:
Insurance Policy Unit
Financial Institutions Policy Branch
Ministry of Finance
95 Grosvenor Street
Frost Building North, 4th Floor
Toronto, Ontario
M7A 1Z1
Effective Date:
January 1, 2016
Decision:
Approved