Do I need optional accident benefits in my car insurance policy?
This post was written by Andrea Girones:
Several changes to the Statutory Accident Benefits regime in recent years has meant that yes you DO need many of the optional benefits offered by your insurance policy. Because they cost more money many people refuse them. Then they are injured in a car accident and realize why they are very important.
Let’s first look at Income replacement benefits optional increase. If you do not purchase this additional coverage your benefits should you be unable to work will be at a maximum 70% of your gross income to a maximum of $400/week. That’s $20,800.00 per year. If you make more than that and do not have any disability insurance either privately or at work then you MUST have optional coverage or you starve before your injuries heal.
But, you also don’t want to be OVER insured either. If you have good short term or long term disability insurance, you don’t have to buy an optional accident benefit increase for income replacement. Income replacement benefits are net of disability benefits. In other words you get one or the other, not both.
Another important thing to note is if you are self-employed and run a lot of expenses through your business to reduce your income then DO not purchase optional benefits. Go get a good long term disability policy instead.
There are also optional benefits for housekeeping help and attendant care. Please review ALL these option with your insurer prior to finalizing your auto policy this year.