When do optional auto accident benefits coverages expire?
Question: Do my accident benefit coverages for medical and rehabilitation benefits expire if I’ve purchased optional benefits on my auto insurance policy?
Answer: Last week, you may have read my article describing the types of optional, increased accident benefits coverages you can add to your auto insurance policy to ensure that certain expenses and treatments required after a car accident can be covered by your auto insurer.
The most common optional benefits purchased are for increased medical, rehabilitation and attendant care benefits. Currently, with standard benefits, unless your injuries are considered “minor” or “catastrophic” injuries, you would have coverage for up to $65,000 under the “non-catastrophic” category.
With standard coverages, these benefits would expire five years after your accident, after which date no further benefits under this category would be payable.
There are two options to purchase increased medical, rehabilitation and attendant care benefits. The first option increases the limit on benefits under the “non-catastrophic” category to $130,000.
Like the standard benefits though, this increased benefit will still expire after five years.
If you purchase the second option, the limit on benefits under “non-catastrophic” category is increased to $1 million.
These increased benefits do not expire, but rather are payable for life (so long as you continue to experience impairments stemming from the accident).
This information is important to be aware of.
Our firm has come across a number of cases recently where, during negotiations, insurance companies have incorrectly informed their insureds who carry optional coverage up to $1 million that their benefit coverages expire, potentially influencing the injured person to sacrifice many years of future coverage.
This article was originally published by The Hamilton Spectator.
