Ontario: Auto Insurance Rates Increase Again, Despite Premier’s Previous Promise

Update: see previous posts – April 23, 2017 Ontario has the most expensive auto insurance premiums in Canada and they’re rising again, April 15, 2017 Ontario roads safest in country but drivers pay the highest premiums, new report says

Queen’s Park. Ontario
Ontario Auto Insurance Rates, the highest in Canada, are set to increase again, despite Ontario Premier Wynn’s promise of a 15% reduction.  Auto insurance rates in Ontario rose an average of 0.76% in the second quarter of 2017, following an increase of 1.24% in the first quarter. This means that while auto insurance rates were suppose to decrease by 15%, in 2017 they have already been raised by 2.0% in the first two quarters, leaving a potential three (3) more quarters for the rates to be hiked before the Provincial election on June 7, 2018. photo by fightyourtickets.ca.

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Premier Wynn making a speech in front of Queen’s Park. She made a former speech in 2013 promising to reduce auto insurance rates for Ontarian’s (who pay more than any other driver in Canada for auto insurance) by 15% – since 2013 rates have decreased by only 8%.  In the meantime, auto insurance rates continue to climb. The next Ontario election is June 7, 2018. photo by fightyourtickets.ca

Auto insurance rates in Ontario rose again in the second quarter of 2017.

Approved rates posted by Financial Services Commission of Ontario show an average increase of 0.76 per cent.

Last quarter, rates went up by an average of 1.24 per cent.

In 2013, the Liberals promised to reduce car insurance premiums by an average of 15 per cent by August 2015, but after the self-imposed deadline passed, Premier Kathleen Wynne admitted that was what she called a “stretch goal”.

Liberal Premier Wynn’s refusal to lower auto insurance rates, as per her promise, means that insurance companies are laughing all the way to the bank. In 2013, Wynn promised to reduce car insurance premiums by an average of 15 per cent by August 2015. 2015 has come and gone two (2) years ago and this promise still hasn’t been fulfilled. Are her promises worth the paper they are written on?  photo by fightyourtickets.ca

In April, a report by Ontario’s auto insurance adviser found that the province has the most expensive auto insurance premiums in Canada despite also having one of the lowest levels of accidents and fatalities.

David Marshall found that the average auto insurance premium in Ontario is $1,458, which is almost 55 per cent higher than the average of all other Canadian jurisdictions.

The insurance system favours cash settlements in lieu of care, Marshall found. Sprains and strains — the majority of claims — often take more than a year to settle and about one-third of overall benefit costs goes toward competing expert opinions, lawyers’ fees and insurer costs to defend claims instead of going to treatment, he wrote.

Marshall’s recommendations included adopting a “care not cash” approach, exploring better ways to care for people who are catastrophically injured and making lawyers’ contingency fees more transparent.

Finance Minister Charles Sousa said the government will be hosting consultations on the recommendations made in Marshall’s report in the coming months.

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