The Canadian Press

Ontario announced Monday it wants to allow drivers to buy reduced insurance coverage to keep premiums down, a move welcomed by insurance companies but one that lawyers and health care providers warned could see accident victims forced to pay for their own care.

Ontario will lower the minimum medical and rehabilitation coverage for auto insurance to $50,000 from the current $100,000 in an effort to keep rate increases from going even higher, which the opposition parties warned could leave drivers without adequate protection.

Motorists could still purchase $100,000 or even $1 million in non-catastrophic medical and rehabilitation benefits if they choose after the proposed changes come into effect next summer, said Finance Minister Dwight Duncan.

“People can lower their premiums based on their choices, but the Ontario basic policy is, in fact, still one of the best in the country,” he said.

“We believe that this will hold the line over the next few years on rate of growth in premiums.”

Ontario’s basic auto insurance package would provide drivers with a $500 deductible, but they would still have the choice of buying a $300 or even a zero deductible. It would also include $200,000 in third-party liability coverage, even though 99% of drivers currently purchase more than that mandatory minimum.

“Certainly it’s an innovative approach the government has taken to give consumers choice so they don’t have to buy a rich Cadillac benefit package if they’re feeling they don’t need all of those benefits,” said Insurance Bureau of Canada vice president Barb Sulzenko-Laurie.

“It has great potential to stabilize the Ontario auto insurance market, which has been subject to great swings up and down.”

The Ontario Trial Lawyers Association said the proposed changes “fall short in securing fairness” for innocent accident victims.

“To some it will be seen as an effort to protect the already lucrative auto insurance industry,” said association president Judith Hull.

The Alliance of Community Medical and Rehabilitation Providers also accused the Liberal government of bowing to the insurance lobby.

“Accident victims will end up looking for rehabilitation and medical treatment in the public health care system, (but) unfortunately what they’ll find is that many services have been delisted,” said alliance spokesman Nick Gurevich.