DYK If You Are Injured in a Car Accident the maximum Income Replacement Benefit is $400 Weekly?

January 19, 2023, Kitchener, Ontario

Posted by: Robert Deutschmann, Personal Injury Lawyer

Healthcare costs covered by OHIP are limited as is access to care. If you can’t work because of your injury the most you’ll get from your auto insurer for Income Replacement Benefits (IRB) is $400 a week – an amount that hasn’t increased in decades and in no way ‘replaces’ the income of most people.

We see the shock on our clients faces daily as they try to do the math on what bills a maximum of $400 a week will cover. In today’s economy ‘not many’ is the answer. Remember that amount only goes down as the income of the individual goes down. It is calculated at a maximum of 70% of gross income capped at $400 in benefits.

How did we get here?

Successive governments made promises to decrease insurance premiums, and this was one way the insurers said they’d keep the premiums down – by not providing realistic coverage amounts to injured individuals. Most people aren’t aware of the deductible (the amount taken back by the insurers in the event of a settlement) which continues to increase.

Consumers are always seeking the lowest premiums but have little understanding of what that means in the event of an accident where they are injured seriously. They are ill-informed. We’ve written about this and even produced three surveys locally about it. You can read those here

Here are some facts:

• 30% of drivers are still unaware of the opportunity to purchase optional coverage. This has increased from 25% of drivers in 2017.
• In 2010 accident victims had their medical and rehab benefits reduced from the basic coverage of $100,000.00 for everyone, to $3,500.00 for almost 80% of accident victims with the option to purchase additional coverage for medical and income benefits.
• While people are aware of the availability of optional coverage, only 8% have purchased additional coverage. Of those, increased liability coverage was the most popular (71%) followed by increased medical coverage (50%) and then increased weekly income benefits (16%).
• Though 75% of people were aware of a deductible that applies to property damage, only 52% were aware of a deductible for pain and suffering damages. The deductible is currently $38,818.97. However, only 10% of those surveyed felt that the deductible is over $10,000.00. That means that where an injured party is awarded $50,000.00 for pain and suffering then the at-fault insurer will only have to pay $11,181.03

Did you know you can buy additional coverage and it isn’t much more than what minimum coverage costs? Protect yourself in the case of a car accident

Check your insurance policy and ask yourself:

• Is your coverage adequate?
• Do you have optional and additional coverage in the event of an accident?
• Which additional benefits do you need?
• Check your other insurance policies through work or business – do you have other disability or life insurance coverage? Factor those into our calculations.
• Do you have LTD and STD benefits from work or other policies if you cannot work?

Seriously injured in an accident?

If you are injured in seriously in any accident remember that your insurance should provide you with adequate benefits. As with all serious accident injuries you should contact one of our experienced personal injury lawyers at Deutschmann Personal Injury and Disability Law as soon as possible 1.519.742.7774

About Deutschmann Law

Deutschmann Law serves South-Western Ontario with offices in Kitchener-Waterloo, Cambridge, Woodstock, Brantford, Stratford and Ayr. The law practice of Robert Deutschmann focuses almost exclusively in personal injury and disability insurance matters. For more information, please visit www.deutschmannlaw.com or call us at 1-519-742-7774.

It is important that you review your accident benefit file with one of our experienced personal injury / car accident lawyers to ensure that you obtain access to all your benefits which include, but are limited to, things like physiotherapy, income replacement benefits, vocational retraining and home modifications.