Why you need optional car insurance benefits
This post was written by Andrea Girones:
June 30th, 2015 Several changes to the Ontario Accident Benefits regime in recent years has meant that yes, you DO need many of the optional benefits offered by your car insurance company. Because theses optional increases cost more money, many people opt not to purchase them. Unfortunately it is only after they are injured in a car accident, that people realize why the optional benefits are very important.
Let’s first look at Income Replacement Benefits. If you do not purchase this additional coverage your benefits, should you be injured and unable to work, will be 70% of your gross income to a maximum of $400/week. That’s only $20,800.00 per year.
If you do not have any disability insurance, either privately or through work, then you should opt to increase these payments or you may starve to death before your injuries heal.
But, you also don’t want to be OVER insured either. If you have good disability insurance, you will not need to buy additional income replacement benefits. Income replacement benefits are net of disability benefits so you only get one benefit, or the other, not both.
Another important thing to note if you are self employed, and run a lot of expenses through your business to reduce your income, then DO NOT purchase optional benefits. Consider a good long term disability policy instead
There are also optional benefits for housekeeping help and attendant care. These are VERY important if you do not work outside the home and care for dependants. Please review ALL these options with your insurance company/broker prior to finalizing your automobile policy this year.