Update: See Insurance Rates page and post 1 , post 2 , post 3.
Ontario is now characterized as a “have not” Province. This distinction was bestowed upon Ontario, before the economy fell to an all time low.
Since the bottom of the economy fell out, Ontarion’s have experienced permanent job loss, high unemployment, loss of savings, high bankruptcy rates, loss of homes and relationships.
When Ontario Premiere Dalton McGuinty announced that the Province of Ontario was going to implement the Harmonized Sales Tax (which will convert the P.S.T to a value added tax which will be harmonized with the G.S.T.) or (H.S.T – which is a combination of the Ontario Retail Sales Tax (P.S.T -8%) and the Federal Goods and Services Tax (G.S.T – 5%) = 13%) on July 1, 2010 Ontarion’s (who understood that new services and items would now cost much more due to this new tax) scratched their heads in disbelief. Why would the Provincial Government want to increase taxes on an electorate who cannot reasonable afford to pay more when they have much less?
The all consuming avarice of private Insurance companies, operating out of Ontario, has led the government to modify the financial landscape to allow insurance companies to enjoy greater profit, at the expense of Ontarion’s. Recently it was announced that the Provincial Government would lower the compensation insurance paying consumers would receive, if involved in an automobile accident. The Ontario Government agreed with insurance companies that accident benefits should be reduced from $ 100,000 to a mere $ 25,000. Provincial Finance Minister Dwight Duncan said that he wanted to quickly pass this legislation, which would make multiple changes to help the insurance industry to realize maximum profit, paid for by Ontarion’s.
It was recently reported that automobile insurance increases were authorized. It is the Chief Executive Officer and Superintendent of Financial Services for the Financial Services Commission of Ontario who authorizes such rate increases (see section 410 of the Insurance Act) The current C.E.O and Superintendent of Financial Services is Mr. Bob Christie who was appointed by the Dalton McGuinty Provincial Government on September 6, 2005.
Almost every Ontarion that invested in the stock market, lost monies on their investments in 2008. Naturally the more one invested, meant the more one would serve to lose. Insurance companies made profits of 2.8 Billion dollars in 2008. Remember how an insurance company defines “loss”. If in 2007 an insurance company calculated its’ profit at 500 million dollars and in 2008 it calculated its’ profit at 400 million dollars, it can state that it “lost 100 million dollars” in 2008.
Based on the insurance industries energetic lobbyists. lobbying the McGuinty Government, to change the regulations, the Liberal Government is listening and will eventually capitulate and pass legislation that great enhances the insurance industries ability to maximize their profit while curtailing their expenses. The losers in this scenerio will be the consumer who is forced, if they want to drive, to purchase auto insurance in Ontario.
Previously there was legislation (Automobile Insurance Rate Stabilization Act, 2003
S.o. 2003, chapter 9 – assented to on December 18, 2003) in place to control the incredible profit that insurance companies were raking in. This Act was designed to temporarily freeze automobile insurance rates for private passenger vehicles. This legislation worked hand in hand with the Insurance Act of Ontario.
What kind of auto insurance premium increases will Ontarion’s be subjected to ?
Some premiums will increase 17% and this is just the beginning.
In the 2nd Quarter of 2009 the Financial Services Commission of Ontario approved auto insurance premium increases to 7.8% to some insurance companies (over 12 months) where other insurance companies doubled that increase.
Policy holders with the following list of Insurance Companies, will be adversely affected and will have his/her premiums increased, now and over the next few months (double digit increases). FSC is an abbreviation for the Financial Services Commission of Ontario (“FSC“):
CAA -premium rate increases of 12.10 % have been authorized by the FSC.
COSECO -premium rate increases of 10.40 % have been authorized by the FSC
Economical – 4th Quarter 2008 + 2nd Quarter 2009 = 11.02 %
Intact Financial (former ING Canada) – rates have increase about 17% since October, 2007
Pilot – 4th Quarter 2008 + 2nd Quarter 2009 = 16.70 %
Scottish and York -premium rate increases of 10.00 % have been authorized by the FSC
TD General Insurance -premium rate increases of 10.00 % have been authorized by the FSC
It looks like Ontarion’s need protection once again from those private insurance companies who sell auto insurance in Ontario. Perhaps it’s time for the Ontario Government to implement the Automobile Insurance Rate Stabilization Act, 2009.
See: Article
It’s not only the auto insurance rates that are increasing. The private insurance companies are robbing us of monies that we don’t have. We just received our renewal policy in the mail from Aviva pilot with a 50% increase in premium. On contacting our broker to see why I was told ” all insurance companies are charging an 18% across the board cost of living rate hike” ” we have lost our 15% no claim discount” because we dared to make a $1600.00 claim (of which we received $1100 after deductible) and I can only guess that the additional 17% rate hike is because we are being punished for making a claim after 20+ years with the same insurance company.
First of all, how can they justify a cost of living rate hike????? My husband is employed in the Auto industry and was out of work for a few months earlier this year. They made concessions to the tune of $20.00 per hour part of which was the grabbing back of their cost of living bonus. The real estate market in our area has plumetted and our home is worth approximately 20% less than prior to the recession yet the insurance company says it will cost more to rebuild it if it should be destroyed. We are constantly paying so this provincial government can dally with big business. The money for the insurance company increased profits is coming out of the pockets of the working poor.
Hi Debra: I couldn’t agree with you more. Given the economic reality facing most people in Ontario, how could these insurance companies possibly justify their actions, especially considering the financial challenges facing most of us in Ontario and the length of time (decades) that both you and your spouse were loyal customers.
Unfortunately, the Provincial Government does not share our concerns and is allowing insurance companies to rake in immense profits at our expense.
Thank you for sharing your experience with us.
Remember to always http://fightyourtickets.ca
Soaring Home Insurance in Ontario
I just found this web site and I feel more people need to visit it and a make a comment.
I have to agree with Debra. Last fall (October 2008) we had a site visit (the second in three years) from our insurance company. The up shot here is that we were told we had to now insure for “replacement value”. This value which was arrived at by the insurance company is 2.5 times higher than the MPAC assessmemt for the property and higher than the value of the mortgage or even the resale value of the home. We live in a pre-confederation home that in reality can not be replaced. We have been with this insurance company for 21 years and we have never filed a claim even during the ice storm. The renewal notice we received after the site visit raised our premium 70%. We received the renewal notice for this fall and it’s up another 20% from last spring. That’s a 90% increase in one year on a claim free policy. Everyone is hurting in Ontario. People are having to take pay cuts to keep their job if they are lucky enough to have one. The other real insult to injury here is the new combined HST of 13% that will be applied acrossed the board (except on your morning Tim’s coffee and paper that is – big deal) on top of these outrageous rates.
Hi Shaun:
I think that your personal experience and sentiment is shared by countless number of people in the Province of Ontario.
What you have experienced at the hands of your insurance company cannot be justified. You should do some research and make some enquiries.
There may be another insurance company out there, that can offer you the same coverage, without the astronomical rates that you are currently being involuntarily subjected to.
I recently purchased a new home and when I initally went to garner home insurance. I rec’d a quote for 835 dollars a year. When I actually took the insurance the company said that – because I didn’t get the insurance in the 30 day quote period (by the way – the agent never mentioned that part) that the new rate was 1100 a year. There is nothing special about the policy and it has a 1000 dollar deductible. The agent also waited to tell me of the price increase until the day my home closed…leaving me no time to shop other companies.
My home policy now costs me more than my auto policy where the chance of a claim is significantly higher!
The cost of home policies has gone through the roof – just as the cost of everything has. Funny how my paycheque doesn’t get much bigger every year…I think our government needs to concentrate on THAT big issue! The way I see it is…my insurance company dinged me with a 33% increase which constitues about 1% of my salary – I should see an increase on my paycheque to help out with the cost of living…don’t you think? Add that up with all of the other ‘expenses’ in life that keep going up – i should see about a 5-7% raise EVERY YEAR. Don’t get me started on the HST and what that is going to do to people.
Our government brags that Canada is ‘recovering’ from our recession…the way things are going it can only get worse…for us…the lower-middle class…
Are there any other countries taking applications for a ‘better life’?
Hi Jods:
Under the circumstances, it appears that unless you initiate further actions, your going to be paying an additional $ 265.00 a year indefinitely, subject to increases along the way. If you were given a quote and the agent didn’t advise you that the quote was only valid for 30 days, then you may benefit from launching a complaint, see http://www.fsco.gov.on.ca/English/insurance/resolvecomplaint-insurance.asp
Fight your tickets advised consumers in November 2009 of the Provincial Government’s agreement to let Insurance Companies to drastically increase their rates, in some cases, up to 40%. See http://fightyourtickets.ca/home-insurance-skyrockets-in-ontario/
Ontario is populated with over 13 millions Ontarians (the highest population of any Province or Territory in Canada) within the Canadian landscape and it is in this Province which Insurance Companies thrive in, thanks to the Provincial Government’s full co-operation. This will only be further exasperated in July, 2010 when every Ontarian will feel the gouging of McGuinty’s Harmonized Sales Tax of 13% – taxes will be cut for Insurance Companies at the same time.
Remember to always http://fightyourtickets.ca