Ontario Car Insurance Rises Despite Promised Cut by the Liberals, says NDP

Update: see previous posts – May 10, 2013 Ontario: Premier Wynn Pleases Financial Supporters in the Insurance Industry by Delaying Auto-Insurance Decreases, May 3, 2013 Ontario: Liberals to Build Additional HOT Lanes and Introduce High Occupany Toll Lanes, May 2, 2013 Ontario’s 2013 Budget: Driver’s Will Save On Auto-Insurance Premiums in Future, May 1, 2013 Ontario: Driver’s Should Save $225 Every Year Based On May 2, 2013 Budget, April 30, 2013 Ontario Auto Insurance: Accident victim Wins Challenge to Ontario’s $3,500 Minor Injury Cap, March 2, 2013 Ontario: If Auto-Insurance Premiums Are Not Lowered, Ontarians May Face Spring Election, February 5, 2013 Ontario: Time to Reduce Auto-Insurance Premiums for All Ontario Drivers, August 29, 2010 Auto Insurance Companies Whine about Medical Costs, August 22, 2010 Auto Insurance Rules Change September 1, 2010 (Ontario), November 13, 2009 Home Insurance Skyrockets in Ontario, November 5, 2009 Liberals Take Care of Ontario’s Auto Insurance Companies, October 5, 2009 Ontario Liberals Support Auto Insurance Profits, July 19, 2009 Insurance Rates Skyrocket in Ontario, June 11, 2009 Insurance Companies exercise discrimination due to “perceived genetic risks”., May 18, 2009 Ontario Auto Insurance – Reducing Accident Benefits from 100 to 25 Thousand Dollars.

Auto insurance rates overall have gone down 0.3 per cent on average year-over-year, said Finance Minister Charles Sousa.
Auto insurance rates overall have gone down 0.3 per cent on average year-over-year, said Finance Minister Charles Sousa. Dozens of drivers have contacted the New Democrats to complain that their rates have jumped.

see source

The governing Liberals are allowing auto insurers to raise rates even though they promised to reduce premiums across the province, the New Democrats charged Tuesday.

Dozens of drivers have contacted the New Democrats to complain that their rates have jumped, said NDP Leader Andrea Horwath.

They include Susan Wright, whose premiums are going up more than 30 per cent, even though her driving record hasn’t changed, she said.

“Here we have a provincial government claiming that they’re interested in getting rates down by 15 per cent, but they’re allowing the insurance industry to jack up the rates by over 30 per cent,” Horwath said.

“You can see how the math works on this. The drivers of Ontario are once again being abandoned by the Liberal government.”

The Liberals promised in the May 2 budget to lower auto insurance premiums by 15 per cent on average across the province after the NDP demanded a cut.

But Wright, 57, said the cost to insure her family’s 2006 Cadillac and 2012 Kia Soul — which covers two drivers and two occasional drivers ages 19 and 27 — recently went up from $3,612 to $4,867.

She said she’s lived in Brampton for 47 years and used the same insurance company for 20 years. She has no driving convictions or claims history, Wright said. Nothing had changed.

The only difference is that she no longer has home insurance with the company, but that shouldn’t account for such a large increase, she said.

“I was flabbergasted. I just couldn’t believe it,” said Wright. “And of course I thought it was coincidental with the recent information of a reduction coming. So I just called and wanted more information about why, but didn’t get satisfactory answers.”

When she spoke to her insurance agent, he told her that there were “increases across the board” and that he’s been “dealing with a lot of screaming people over the phone,” she said.

Wright, who is retired and whose husband is planning to retire, said she can’t afford the monthly increase.

“It makes a dramatic impact,” she said.

Rates are down, say Liberals

Rates overall have gone down 0.3 per cent on average year-over-year, said Finance Minister Charles Sousa. The government and the insurance industry are also working to lower costs by clamping down on fraud.

He bristled at the NDP’s accusations that he wasn’t serious about reducing rates.

“Of course we’re committed; we put it in the budget,” he said in the legislature.

“We made it clear that that’s exactly what we want to do. We’ve already assessed the fact that rates have gone down on average, not up.”

Insurance companies have to apply for an overall rate increase to the provincial regulator, the Financial Services Commission of Ontario.

The Liberals have promised to expand the regulator’s investigation and enforcement authority to ensure that insurance companies are passing on their savings to drivers.

They would have the authority to license and oversee health clinics and practitioners who bill insurers to help crack down on fraud, which the insurance industry says is the main driver of high rates.

Sousa has said the draft legislation would also require insurers to offer lower premiums to people with safe driving records.

He expects the measures will reduce the average annual premium per vehicle by $225, but Sousa has acknowledged that some regions in the province won’t see as much of a reduction as others.

“The insurance companies have to apply for rate increases, and that’s not happening because we made it clear we want to find reductions going forward,” Sousa said Tuesday.


It's only fair to share...
Share on FacebookTweet about this on TwitterGoogle+Pin on Pinterestshare on TumblrShare on LinkedInShare on RedditEmail to someone

Leave a Reply

Your email address will not be published.