The last days of summer rushed behind us and here we are enjoying the first days of fall. As the season changed it had brought some changes to car insurance affecting the accident benefits. You have probably heard about these innovations which had come into effect on September, 1st.

This reform carried out by Ontario government is intended to make car insurance rates more stable and car insurance coverage itself more flexible for drivers. The fact definitely draws extra attention of those who drive in Toronto. This means of almost all citizens because who doesn’t drive. Everyone drives in Toronto except for those under 16. In this respect information on the aspects that have been changed to car insurance as a whole is very much relevant and should be brought to public attention in every detail. If you haven’t got any notification from your insurance carrier as of yet you’d better get in touch with your car insurance broker for detailed explanation. It is important you learn about the alterations of your insurance policy so that you could customize it to your own needs. Here are the key aspects that have been changed.

Minor Injury Cap
With the aim to reduce claims on less serious collisions it was decided that those who suffer minor injuries in car accidents will be able to get $3,500 worth treatment. This will become a portion of medical and rehabilitation accident benefits.

Use of Credit Scores Ban
Up to this recent time credit score used to be among the most powerful factors which could affect your car insurance premiums. To get the most-up-to-date information about your credit score car insurance carriers would access your credit score. This was done with the aim to provide a quote for you. According to the recent amendments insurance companies are banned to get this sort of data.

Insurance Rates Where You are 25% at fault
It used to be that your car insurance premiums increase in the event you were found 25% at fault in an accident. Under new rules, your car insurance rates won’t be increased under the same conditions.

Direct Compensation
In case your car was damaged in an accident your insurance carries is obliged to cover the cost of repair. That means that you’ll get direct compensation as part of your car insurance policy. According to the new changes you have a choice to increase deductibles. You can pay $300-$500 out of your own pocket and therefore reduce your car insurance premiums.

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July 1, 2010 will be marked as a day when Harmonized Sales Tax (HST) goes live in two provinces of Canada, namely Ontario and British Columbia. HST will be created as a result of combination both the Provincial Sales Tax (PST) and the Goods and Services Tax (GST). The HST rate will amount 13% in total, 8% of which makes provincial portion and 5% goes to the federal part.
Speaking about insurance market, there are some types of insurance products subjected to PST (also known as RST, Retail Sales Tax).

These are home insurance and a few of travel insurance products. So, the question is – which way the implementation of HST might change car and home insurance premiums? The answer is surprisingly simple. There won’t be any alterations made to your car insurance premium. And there is a simple explanation to the afore-stated fact. Since car insurance premiums in Ontario originally were not prone to taxation, consequently they will be tax-exempt further on, when HST comes into play. Same thing can be observed when it comes to reviewing home insurance premiums. It is a well-known fact that currently tax burden on home insurance premiums in Ontario amounts 8% of PST. No GST is applicable in this case. With the implementation of the HST, insurance premiums will not include federal portion (5%) of the HST, which means that you will continue paying 8% of provincial portion only. As to the other popular insurance products you can be safe and sure that nothing will change after the HST is introduced.
British Columbia is another province to experience innovations in its taxation system. For the time being, PST in this province comes to 7%. No changes are expected to take place regarding insurance premiums, say, for car or home insurance. These insurance products will continue to be tax-free as it was originally.
All this means that your premiums will not increase because of new tax implementation, but at the same time it is essential to know you are not spending more on premiums than you should. For that reason it is advisable to compare quotes from different insurance companies.

Improved credit markets, increased domestic spending and a robust stimulus investment lead the charge as Canada’s economic growth picks up pace, says a report by RBC Economics.

“An economic recovery is solidly taking root in Canada with the full impact of stimulus spending, historically low interest rates and improved credit markets all taking effect this year,” says Craig Wright, senior vice-president and chief economist, RBC.

Poised for a GDP growth of 3.1%, the economy is further expected to be fuelled by the emerging housing market, investment by the private sector, and increased payrolls and investment by corporations, he says.

The report projects consumer spending will have expanded next year by 2.8%, keeping pace with business investment estimated to grow by over 7%. This will push Canada’s GDP to 3.9% in 2011.

Although a more moderate growth pace compared to a 5% surge in fourth quarter 2009, the growth is likely to be steady as the auto and housing sectors, and the labour markets continue to recover.

“The housing market should remain strong as improved labour conditions and low mortgage rates fuel demand,” says Wright.

The report indicates that housing starts are expected to grow to 184,000 in 2010, considerably higher from 149,000 in 2009, while projecting unemployment rates to average 8.4% in 2010 before dropping to 7.7% next year.

A recent Statistics Canada release says the New Housing Price Index was up 0.1% in January; recovering from a 0.9% decline last December. That’s the first year-over-year increase since December 2008.

At the provincial level, the RBC Economics survey says Newfoundland and Labrador will lead the country in economic growth with a projected GDP rate of 4.1%; made possible by increased production of crude oil and mineral products, and a surge in capital spending.

Following closely, Saskatchewan’s growth of 3.6% will result from improved capital investment, an expected increase in agricultural output and rising commodity prices. British Columbia will have shaken off its worst performance in two decades in 2009 to grow 3.4%, while Ontario (3.3%) will ride back to positive economic growth on the back of an improving housing sector and greater motor vehicle production.

Alberta, although expecting only a 2.5% GDP hike this year, will see growth leap 4.4% in 2011; becoming the second highest after Saskatchewan’s 4.6%. This economic momentum is expected to come from improvement in natural gas markets, among other economic sectors.

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