Automotive

Auto insurance rates rise in Ontario despite Liberal pledge to lower them by 15 per cent

  • Last Updated:
  • Apr 16th, 2018 10:57 pm
[OP]
Deal Guru
User avatar
Mar 25, 2003
12179 posts
1891 upvotes
Markham

Auto insurance rates rise in Ontario despite Liberal pledge to lower them by 15 per cent

http://www.cp24.com/sports/auto-insuran ... -1.3122166
Allison Jones, The Canadian Press
Published Wednesday, October 19, 2016 2:10PM EDT
Last Updated Wednesday, October 19, 2016 4:34PM EDT


TORONTO -- Auto insurance rates are rising in Ontario, moving the Liberal government even further away from a self-imposed target of an average 15-per-cent reduction.

The Liberals promised in 2013 to cut auto insurance premiums an average of 15 per cent by August 2015, but after that deadline came and went, Premier Kathleen Wynne later admitted that was what she called a "stretch goal."

Approved rates in the third quarter of 2016 increased by an average of 1.5 per cent, according to the Financial Services Commission of Ontario.
That knocks the average decrease since August 2013 -- which at one point was over 10 per cent -- back down to about 8.35 per cent, or a little over halfway to their goal.
Finance Minister Charles Sousa said programs that will reduce rates further have yet to come into effect, so though reductions are taking time, "they're happening."

"Our target to reduce rates doesn't change," he said. "Our desire to have a sustained approach over a long period of time, that's what we're trying to establish."

The government still wants to see rates cut by an average of 15 per cent, Sousa said, though there's no longer a deadline attached to the goal.

Premier Kathleen Wynne called the work on rates so far a "success."

"We're going to continue to work with the industry to find other ways to take costs out of the system," she said.

The promise in 2013 came as part of a deal to get NDP support for that year's budget when the Liberals were still a minority government. NDP Leader Andrea Horwath said the government is putting the interests of insurance companies over those of Ontario drivers.

"It's no doubt that the Liberals have betrayed the discussions that we had during that minority parliament, but more importantly they're betraying the people of the province yet again," she said.

A spokeswoman for Sousa noted that the government has lowered the maximum interest rate that an insurer can charge for monthly auto premium payments and prohibited minor at-fault accidents from boosting premiums. As well, it has appointed a special adviser to look at ways to lower costs and further reduce rates.
96TB Mediasonic H82-SU3S2 / 72TB Raid 50 on Mediasonic H8R2-SU3S2
48TB Node 304 / i5-3570 / Server 2016 Essentials
12TB HP Mediasmart EX 495 (E8400, 3.0GHZ, 4GB Mushkin), with Server 2016 Essentials
16TB Qnap TS-459 Pro
45 replies
[OP]
Deal Guru
User avatar
Mar 25, 2003
12179 posts
1891 upvotes
Markham
GTA drivers face priciest auto insurance in Ontario; Brampton tops list
http://www.cp24.com/news/gta-drivers-fa ... -1.3122332
96TB Mediasonic H82-SU3S2 / 72TB Raid 50 on Mediasonic H8R2-SU3S2
48TB Node 304 / i5-3570 / Server 2016 Essentials
12TB HP Mediasmart EX 495 (E8400, 3.0GHZ, 4GB Mushkin), with Server 2016 Essentials
16TB Qnap TS-459 Pro
Deal Addict
Jan 27, 2011
1862 posts
898 upvotes
Toronto
Of coarse rates are going up! Everything the Liberals tell us is a lie and everything they touch goes up. Car insurance, hydro, gas etc...
Up votes, down votes, they're all votes for me! I thank you!
Deal Addict
Jul 30, 2015
1560 posts
670 upvotes
Toronto, ON
some1not wrote:
Oct 19th, 2016 5:14 pm
Of coarse rates are going up! Everything the Liberals tell us is a lie and everything they touch goes up. Car insurance, hydro, gas etc...
Rates DID go down, just not by 15%, but by 8.5%.
Deal Addict
Jan 27, 2011
1862 posts
898 upvotes
Toronto
canoek wrote:
Oct 19th, 2016 5:15 pm
some1not wrote:
Oct 19th, 2016 5:14 pm
Of coarse rates are going up! Everything the Liberals tell us is a lie and everything they touch goes up. Car insurance, hydro, gas etc...
Rates DID go down, just not by 15%, but by 8.5%.
Glad it went down for someone!
Up votes, down votes, they're all votes for me! I thank you!
Deal Fanatic
User avatar
Mar 9, 2007
9095 posts
3536 upvotes
Toronto
Went down 10% for me.

WOULD SOMEBODY THINK OF THE CHILDREN!!!
Deal Expert
User avatar
Jan 27, 2006
16820 posts
1320 upvotes
Woodbridge
Blah blah blah blah blah.

Seriously, if we complain enough will things change. LOL


My rate went up $10 a month and yes I shopped around. Again Allstate is "cheaper" only because of the Union discount.
"I'll put up color bars before I'll put you in front of our cameras."

- MacKenzie
THE NEWSROOM (HBO)
Sr. Member
User avatar
Jan 19, 2007
700 posts
232 upvotes
Torontario
Personally the more I understand the reasons that insurance and reinsurance companies claim for Ontario's insurance rates being high -- the more I am thinking that Ontario might to try the Quebec model.
This will be biggest socialization of privatized risk that seems the private companies are seeming not to scale to manage effectively, and there's immediate benefit to all.
Moderator
User avatar
Jul 5, 2004
22938 posts
2620 upvotes
Even if your rates went down slightly (mine didn't at all), it's not apples to apples. You lost a ton of benefits, most of which you probably don't even know that you lost. The government may have caused rates to drop 8%, but they screwed over every one of us in the process. They did us no favours at all, yet Kathleen Wynne call it a "success." She truly is an idiot.

I wonder if this guy thinks it's a success?
http://www.cbc.ca/news/canada/hamilton/ ... -1.3796126
Toronto Maple Leafs tickets for sale. PM me for details
Jr. Member
Sep 18, 2009
145 posts
32 upvotes
Paying 410 a month, as a G2 driver so I feel the pain.

I wouldn't mind if it went lower, but not at the expense of my coverage.
Deal Addict
Jan 27, 2011
1862 posts
898 upvotes
Toronto
Shaner wrote:
Oct 19th, 2016 7:53 pm
Even if your rates went down slightly (mine didn't at all), it's not apples to apples. You lost a ton of benefits, most of which you probably don't even know that you lost. The government may have caused rates to drop 8%, but they screwed over every one of us in the process. They did us no favours at all, yet Kathleen Wynne call it a "success." She truly is an idiot.

I wonder if this guy thinks it's a success?
http://www.cbc.ca/news/canada/hamilton/ ... -1.3796126
BINGO!!
Up votes, down votes, they're all votes for me! I thank you!
Deal Addict
User avatar
Aug 27, 2014
3836 posts
909 upvotes
Canuckland
Insurance is a scam in ontario, go to PEI and chop the price by half!
Deal Addict
User avatar
Mar 8, 2002
4223 posts
844 upvotes
Ottawa
Maybe if the government did more to take bad drivers and vehicles off the road, that would improve insurance rates. But it would also reduce revenue. We need stupid drivers on the road to pay traffic tickets to support the local police.

In Ottawa, insurance rates are cheap. The gov't screwing around with insurance is just trying to buy votes in the 905 where rates are stupid.
Last edited by MacGyver on Oct 19th, 2016 9:51 pm, edited 1 time in total.
Deal Addict
User avatar
Aug 27, 2014
3836 posts
909 upvotes
Canuckland
MacGyver wrote:
Oct 19th, 2016 9:33 pm
Maybe if the government did more to take bad drivers and vehicles off the road, that would improve insurance rates. But it would also reduce revenue. We need stupid drivers on the road to pay traffic tickets to support the local police.
Not true, they charge that much because they can.

I'm sure there are way more crazy drivers in USA than Canada yet they pay half of what we pay.
Deal Addict
Jun 18, 2008
4460 posts
2875 upvotes
Montreal
Shaner wrote:
Oct 19th, 2016 7:53 pm
Even if your rates went down slightly (mine didn't at all), it's not apples to apples. You lost a ton of benefits, most of which you probably don't even know that you lost. The government may have caused rates to drop 8%, but they screwed over every one of us in the process. They did us no favours at all, yet Kathleen Wynne call it a "success." She truly is an idiot.

I wonder if this guy thinks it's a success?
http://www.cbc.ca/news/canada/hamilton/ ... -1.3796126
While it's pure bad luck and terrible what's is happening to that guy you could have provided some context. There are 10 million drivers in Ontario and your new rules would affect 300 drivers/year, 99.999% would benefit from lower rates that everyone seems to want. He's suing the other driver, financially he'll end up fine. Under our rules this poor guy would get much much less from the SAAQ as he is nowhere near a vegetative state (they give you peanuts for that here as well) and he would have to fight the SAAQ appointed doctors decisions, all the while not being allowed to sue anyone. If you expect millions in potential compensation for injuries expect the insurance company to account for this risk. For 99.99% of people who don't get catastrophic injuries, it works. Prices here are great, until you become one of the unfortunate .01%

Top