A new report suggests that Ontario drivers may be overpaying by as much as $4 billion for auto insurance while industry profits soar.
Because of a flawed government formula, Ontario drivers paid out between $3 billion to $4 billion more than they should have on auto insurance premiums between 2001 and 2013, according to a study released Friday.
In 2013 alone, Ontario drivers may have over-paid by $840 million, according to the study by Fred Lazar and Eli Prisman, economics professors at the York University Schulich School of Business.
New Ontario Liberal auto insurance bill favours insurance industry profits at the expense of accident victims.
An Ontario Liberal government bill designed to reduce costs for the auto insurance industry entered public hearings on Wednesday.
Supporting the bill were groups such as the Insurance Bureau of Canada, the main lobby group for the auto insurance industry, as well as insurer heavy weights such as Aviva Canada.
Opposing the bill were groups representing accident victims such as the Ontario Trial Lawyers Association and the Fair Association of Victims for Accident Insurance Reform (FAIR). These and other groups argued passionately that a number of the changes in the bill would benefit insurers at the expense of accident victims. Continue reading
Ontario Liberal Finance Minister Charles Sousa has failed to honour a government promise to lower Ontario auto insurance premiums by 8%.
Despite legislation passed by the Ontario legislature that mandates it, the Ontario government’s goal of an 8% auto insurance premium reduction over one year and a 15% reduction over two years, is not going happen.
This was officially confirmed Wednesday when the Financial Services Commission of Ontario (FSCO) released its third quarter rate changes for the three months ending September 30, showing that for the second straight quarter, there was essentially no change in auto insurance rates in Ontario.
This means that during the four quarters that the government promised an 8% reduction, auto insurance rates in Ontario fell only 5%.
And this was no ordinary government promise that is being broken. The promise of an 8% reduction over one year and a 15% reduction over two years, was the centre-piece of the 2013 Ontario budget and is embodied in legislation and regulations passed by the Ontario government. Continue reading