Ontario has turned nine standard car insurance benefits into optional add-ons, including income replacement.
Drivers who decline all optional benefits can save roughly $100 a year, or $2 a week.
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But the potential loss is far greater.
Insurance brokerage Surex told CTV News that a self-employed contractor injured in a crash and forced to take a year off work could lose up to $20,800 in income replacement benefits after opting out.
Self-employed Canadians are particularly exposed, as many lack an employer-provided safety net when work stops.
Small Savings, Big Risks
The reforms give drivers more flexibility to shape policies around their needs, but the trade-off may not be worth it.
RH Insurance's Morgan Roberts told CTV News that the premium reduction from removing optional benefits is roughly the cost of a couple of coffees each month, while the financial consequences of being underinsured after a major accident could be significant.
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Roberts added that the added flexibility could gradually nudge the industry toward more personalized insurance pricing over time.
All standard Ontario car insurance policies still include medical, rehabilitation, and attendant care coverage. Other benefits, such as rehabilitation and indexation, remain optional.
Motorists renewing policies should review them carefully to ensure they retain expected benefits.
Existing policyholders should not have changes made to their policies, but alterations may occur regarding who is covered.
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For example, pedestrians, cyclists, and certain passengers previously covered under an old policy may no longer be covered under a new one.
