Before there were Accident Benefits, automobile insurance policies relied on Liability coverage to handle cases where a driver was at fault and caused injuries to a third party. That means, so long as you weren’t at fault in an accident, your injuries could be covered by the Liability insurance of the responsible driver.
There were two major problems with that approach:
1. There was no coverage provided at all if the at-fault party themselves were injured. This meant potentially having to cover significant medical expense personally
2. Due to a crowded legal system, it could take many months, or even years, before the not-at-fault parties were able to recover payment from the responsible driver – all the while, having to cover potentially significant medical costs themselves
Ultimately, the real problem with this approach was that people were being stuck with taking on significant personal financial burden as a result of their injuries. Accident Benefits seeks to correct these problems by having people get coverage through their own insurance policy.
Ontario has enjoyed some form of Accident Benefits since 1990 (with the creation of the Ontario Motorist Protection Plan). Since then, Accident Benefits have undergone several changes and versions in an effort to provide adequate benefits, give the consumer choice, and keep the automobile insurance product affordable.
Speak with a Staebler Broker to ensure you're properly covered with Accident Benefits.