HomeMy WebLinkAboutThe Citizen, 1990-06-13, Page 6PAGE 6. THE CITIZEN, WEDNESDAY, JUNE 13, 1990.
The new OMPP
puts the brakes on
car insurance rates.
Automobile insurance rates have been
skyrocketing.
Since 1987, the Ontario government has
been trying to control the escalating cost of car
insurance by capping rates.
Still, increases of 30-35 % were required
this year to cover the increased cost of claims
from accidents and injuries on Ontario’s roads.
Clearly, something had to be done.
The solution is a comprehensive new system
of automobile insurance. It’s called the Ontario
Motorist Protection Plan.
The OMPP makes it easier, quicker and less
costly to get payments to those who need them
after an accident. And it allows insurance companies
to keep rate increases modest - this year,
and in the future.
PUTTING THE BRAKES ON RATES.
The new plan will hold premium increases this
year to only 8 % on average in urban areas,
while average rates in rural areas will not
increase at all.
This helps to keep insurance affordable for
people who drive for a living, seniors and those
on fixed incomes, and young drivers as well.
WHAT ABOUT COMPENSATION IN
THE EVENT OF AN ACCIDENT?
Today, you usually have to sue to recover
damages. It’s a time-consuming and expensive
process.
Under the Ontario Motorist Protection Plan,
your own insurance company handles your
claim when you have an accident. Accident
benefits are guaranteed, and begin quickly after
the claim is filed. Because the sooner benefits
are paid, the sooner people can get on with
their lives.
Accident benefits are paid without hassling
over fault. Because injured people need medical
assistance, income replacement and child care
right away!
But if you are driving while drunk or
convicted of a criminal offence in regard to your
accident, you will not get income benefits.
DOES FAULT STILL COUNT?
Under the Ontario Motorist Protection Plan,
“fault” will continue to be used for rating purposes.
Good drivers will be rewarded with good rates.
Bad drivers will be charged higher premiums.
And there are now higher fines for traffic violations
such as speeding.
If you are at fault in an accident, you will
pay for damage to your own car to the extent that
you are at fault, unless you have optional collision
coverage. 1
One goal of the OMPP is to ensure help is
there when it is needed, reducing economic
hardship. Another is to keep insurance rates
within reach of the average driver. It’s a balanced
approach.
And that’s the right direction for auto
insurance.
Your insurance company and your broker or
agent have all the details. And you will receive
an information brochure with your premium notice.
Government
of Ontario
The Ontario Motorist
Protection Plan.
Everyone’s Protected.