Changes coming to vehicle insurance policies next week

Big changes are coming to your auto insurance policy next week.The provincial government says it is all about giving drivers more options, but experts warn the potential savings may not be worth the risk.CTV's Heather Centeren has more on this and joins us now.Heather, these changes have been in the works for some time.

We first heard about the policy change two years ago in the Ontario budget, but now it is coming into effect.But experts say be careful what changes you make to your policy.Ontario drivers renewing their car insurance will soon face a brand new set of decisions.For years, policies automatically included 12 accident benefits.Starting July 1st, nine of them, listed here, will become optional.Experts say the most important one to consider changing is income replacement benefits.

If you were involved in an auto accident and you had to use that benefit, That's essentially like a disability benefit.So if you're unable to work, then they would supplement your income.But if you're retired, you don't need that coverage because you don't have any income.So why pay for it?

But the sales broker from Donovan Insurance says don't be too quick to opt out of anything.

So if you remove certain things and then you do have an unfortunate incident, you could be at risk to not have have coverage.

The Insurance Bureau of Canada says those prepared to make changes are often covered elsewhere.

I've heard other people say, well, I have all these other benefits.I have a separate policy for health care and income replacement, so I don't need it on my auto policy.

But is it worth it to switch up your policy?Some policy owners say it isn't.

A lot of them are opting just to leave it.because a dollar over the course of a year or 15 bucks over the course of the year is not that much in the grand scheme of things.

Adjustments to a policy would only need to be made during renewal time.If you don't make any changes, your policy will beas is.

If you want to change some of these coverages, you're going to have to do so in writing.So you're going to have to, you know, send an email or sign a document that lets your insurance broker or agent know, yes, I want to remove this coverage or that coverage.

When in doubt, experts say talk to your broker or agent so they can help steer you in the right direction with coverage that's catered to you.to you.Another important thing to note, the optional benefits now only apply to those named on the policy.Previously, pedestrians, cyclists, and certain passengers were covered, but may not be anymore.Leigh Ann.

Okay.Heather, thanks very much.CTV's Heather Senaren.