Lower premiums, HIGHER RISK?

Ontario will soon allow drivers to opt out of certain auto insurance coverages. But one expert urges caution

- MARISA COULTON

The Ford government announced in its 2024 budget that Ontario drivers will soon be able to opt out of some auto insurance coverage to lower their premiums.

Medical, rehabilitation and attendant care benefits will remain mandatory, while other accident benefits — including income replacement, death benefits and funeral benefits — would become optional.

And while the reforms promise to allow drivers to lower their monthlies, Ontarians still pay the highest average annual premiums in Canada at $1,796 according to Ratesdotca. For GTA drivers, that number skyrockets nearly $600 to $2,391 a year.

Some drivers, such as 24-year-old Oshawa resident John Hatherly, are taking matters into their own hands ahead of promised reforms.

Car insurance in Ontario is a “rip off,” he noted in a Reddit post last year, and the $273 amonth he used to pay to insure his 2020 Kia Forte was “ludicrous,” he says.

A car salesman, Hatherly knew that older cars could generally be insured for less — so when he came across a classic car, a 1978 AMC Concord, he bought it.

While he’s kept his insurance the same despite the government’s promised reforms, Hatherly raised his deductible to $2,000 from $500 to bring down his monthly premium. The deductible is the portion of any claim that a driver pays with the insurance company picking up the rest.

“If something happened to my car, I probably wouldn’t have been able to come up with the $2,000,” Hatherly admits. “I would have just been kind of screwed. But then I was just like, ‘Hey, this saves me $30 a month. That can pay for most of my phone bill. I’d rather do that.’ ”