The Importance Of Having Adequate Car Insurance Coverage.

When people buy or renew their car insurance, the standard rate for income replacement benefits is a maximum of $400 per week calculated at 80 per cent of their take-home pay before the injury.

If a person’s take-home pay is far higher than that, they should be exploring buying optional weekly benefits. For instance, if your average take-home pay is $1000 a week, 80 per cent of that is $800 a week, so if you have standard coverage for your accident benefits and you are only getting $400 a week, you have a $400 weekly loss. If you’re involved in an accident, and you are at fault, you are never going to recover that $400 a week. If it is somebody else’s fault, you have to wait till the end of the case to recover that additional $400 weekly loss.

The cost of a buying optional accident benefits is not prohibitive, so it is something that people should explore if they have a high net take-home pay, especially today when people have big mortgage payments, big car payments and all the family expenses to look after. If they are unable to work for an extended period of time after a car accident, it is very important that they have as much money by way of income replacement benefits as they are possibly entitled to, to maintain family expenses.

Very few people understand that they can buy additional benefits. Many people simply shop around for the cheapest possible insurance policy, which is not always the best option. I advise people not to buy the cheapest insurance policy available. Rather, buy the insurance policy that is going to give you appropriate protection. You should have at least a million dollars of third party liability. Also, your accident benefits, especially with respect to your income replacement benefits, should be equivalent to 80 per cent of your weekly take-home pay, whatever that is. Too few people buy the increased benefits that are available to them, even though the cost is very reasonable. These benefits can make a huge difference to you and your family in case of an accident.


If you, or someone you care about, is dealing with Personal injury law issues in the Brampton, Ontario Region, contact Folkes Legal Professional Corporation.

This article is taken from a April 28, 2008 interview with Ron Folkes, LL.B., Personal Injury Lawyer with Brampton Personal Injury Lawyer in Brampton, a Personal Injury Law Firm.

Note that laws vary from province to province. Please consult with a lawyer in your own area to be sure of the laws and specific issues in your own jurisdiction.