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Ontarians pay the highest auto insurance costs in the country. The Liberals committed to reduce policy premiums by 15% during the last election but the changes effective today will lower them by just 3%.

Industry experts warn that with lower costs some benefits and coverage will be cut. For serious injuries, the combined limit of $86,000 for medical, rehabilitation and attendant care is dropping to $65,000. For injuries that are defined as “catastrophic” like becoming paralyzed, the $2 million limit for medical claims dropped to $1 million.

If your policy was renewed earlier this year, you won’t see the new changes until your next renewal. But if you buy or renew a policy from this point on, the impact is immediate.

Some other changes include a reduction to the fee insurance companies charge for monthly payments from 3% to 1.3%. And minor collisions, like a fender-bender will no longer be considered an at-fault accident if damages are less than $2000 and no one was hurt.