Yahoo Finance Ontario PCs take a stab at lowering auto insurance rates
Ontario drivers pay among the highest insurance rates in Canada. The PC government wants feedback on ways to bring them down.
Drivers, insurance companies, and others in the industry have until Feb.15 to fill out an online questionnaire.
The Insurance Bureau of Canada says Ontario’s auto insurers support the initiative and hope drivers take the opportunity to have their say.
“We hope that this process encourages constructive feedback to support positive changes to auto insurance for Ontarians,” says Kim Donaldson, Vice-President, Ontario, IBC.
“We have been calling for changes to how auto insurance is regulated for years. The province’s auto insurance system is outdated and Ontario drivers pay too much for their insurance. We believe there is a better approach.”
There’s a real problem in Ontario
Ontario also hopes to bring in more competition to achieve its goal and review the rate regulation system. The government is also working with Parm Gill on a bill that would end rate discrimination based on where you live.
A 2016 report found Ontario had the most expensive premiums in the country, despite having one of the lowest rates of accidents and deaths.
Desjardins CEO Guy Cormier recently told Yahoo Finance Canada there’s a real problem in Ontario.
“There are some claims out there where we think there is fraud,” says Cormier.
“We are in discussion with government agencies.”
For example, Brampton drivers pay nearly $1,000 more than the average driver in Toronto. That’s because the average claim per vehicle is 41 per cent higher in Brampton.
The previous Liberal government also promised to bring rates down. But eventually admitted the goal was a stretch and the target was not met.
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