New Legislation On Auto Insurance In Ontario

The authorities in Ontario that seek to limit the number of on-road accidents have appealed to legislators for help. Consequently, Ontario’s drivers must learn the specifics, regarding the latest laws, regulating the claims made by victims of motor vehicle accidents.

What is the purpose of the new laws?

• They are supposed to lower the rates charged consumers that buy automobile insurance.
• Passage of the new laws is supposed to reduce the amount of fraud that exists among the various personal injury claims.
• Finally, the laws’ passage was seen as a way to increase the speed with which the various personal injury cases get settled.

One law called for establishment of a new office.

It is called the Investigation and Prosecution Office. Those working in that office have been made responsible for studying the amount of fraud that exists in the ongoing personal injury cases. As the office’s name indicates, discovery of fraud shall lead to implementation of a firmly-based prosecution.

Some of the new regulations target the operators of tow trucks.

Now tow truck operators must post their prices in a manner that allows the public to view those same prices. In the past, people who called for a tow truck did not know what the operator would charge them, until the operator’s bill arrived in their mail box.

A new law makes acceptance of credit cards mandatory, among those that earn a living by towing damaged and malfunctioning vehicles. Finally, one provision in the new laws calls for a listing of the services provided by a given operator, whenever that same operator sends an invoice to a former customer. Before, customers would receive a bill with one large price. The bill did not explain how the operator had arrived at that price.

Obviously, the prices charged for a specific service, as stated on a bill, must correspond with the operator’s posted prices. Indeed, the government has now provided the public with a way to check on the correspondence of advertised prices and those that get placed on customers’ invoices.

In the past, operators felt free to charge whatever they wanted, because the insurance company would cover that charge. Faced with the prospect of high towing bills, the insurance companies would require policy holders to pay a high price for premiums. The new laws are supposed to end that vicious cycle, as per personal injury lawyer in St. Catharines.

The regulation that demands acceptance of credit cards reduces the amount of pressure on insurance companies, when it comes time to reward a claimant. If a claimant has paid with a credit card, that practice does not create a large hole in the claimant’s bank account. Consequently, there is no need for a rapid filling of that same hole.

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