Automotive

Allstate wanted to deny insurance to drivers in Brampton, Ont.

  • Last Updated:
  • May 21st, 2019 11:29 am
Deal Addict
Sep 21, 2011
1843 posts
526 upvotes
Hopefully they never never take the postal code away from insurance quotes like a guy from Lindsay should be paying for people in Brampton and markham crashing all the time leave us the **** alone please.
Deal Expert
User avatar
Nov 15, 2004
21786 posts
4903 upvotes
Toronto
MusicBox wrote: Please lets make insurance a crown entity and lets kick out all these private corporations, enough is enough.
No. **** that. I shouldn't be paying for some organized crime ring to defraud an insurer because I live in the same province.
cheapmeister wrote: I think that is how insurance works in BC.
And that's why BC's insurance is such a cluster****
cheapmeister wrote: It's not click bait. A former employee is making it known of the bias against Brampton, which is made up of a ethnic minority group. In return they are getting counter sued for like 600k. A bias against a minority is racist.
The GTA and the rest of Ontario has tons of minorities and we all drive fine. This isn't about 'racism', it's about pure actuarial statistics and protecting the rest of their customers from having to subsidize criminals and the incompetent.
Deal Fanatic
User avatar
Mar 31, 2017
7069 posts
3383 upvotes
is automobile insurance even profitable anymore to underwrite?
Deal Guru
User avatar
Feb 23, 2008
12939 posts
1862 upvotes
Brampton
badOne wrote: is automobile insurance even profitable anymore to underwrite?
Why would a TD Bank be selling insurance if they didn't make money? TD didn't always sell insurance, but for some reason they are selling it now.
Lets Go Blue Jays!!!
Deal Fanatic
User avatar
Feb 19, 2004
7641 posts
448 upvotes
BC
Swerny wrote: smart move by Allstate, I'm sure every insurer would rather not write business in the hellhole that Brampton has become

This guy no doubt was on his way home to Brampton:

https://globalnews.ca/news/5276391/high ... run-video/
That's attempted murder. Hope they catch the person and threw the book at him.
insert witty comment
Deal Fanatic
Aug 31, 2017
5182 posts
3058 upvotes
In defence of BC auto insurance, that was mismanagement of the insurance funds that led to the losses. If you want a good system, then look to Quebec in some parts. Injuries and legal fees are expensive.

Markham's fraud looks to be more of the property side of insurance these days.
Deal Fanatic
Aug 31, 2017
5182 posts
3058 upvotes
cheapmeister wrote: Why would a TD Bank be selling insurance if they didn't make money? TD didn't always sell insurance, but for some reason they are selling it now.
Diversify ones business. Tie it in with the banking products.

Auto insurance is still profitable, but the margins are slim. You'll start to see a lot more consolidation within the insurance market.
Deal Addict
Oct 18, 2014
2050 posts
925 upvotes
HK
I'm not familiar with any regulations in Ontario that require an insurer must provide insurance (basic liability product) to everyone including high-risk profiles, please correct me if I'm wrong. I know some states makes it mandatory that insurers must provide insurance to everyone including bad drivers. That being said, those products are very expensive.

Either way, why would folks be upset? It's a private business (rightfully so) and they should be able to decide whom they want to do business with, just as consumers can by choosing whom they go with. The biggest expenses in the books are claims payout.
Deal Expert
Aug 26, 2001
18145 posts
1741 upvotes
Mississauga, ON
Honestly, Allstate could have avoided this whole brouhaha by simply RAISING RATES BIG-TIME in Brampton - rather than "exiting the Brampton market entirely" - and completely sidestep the whole media kerfuffle.

If they doubled or tripled their standard Brampton rate, then they'd effectively not be used by anyone living in Brampton, even though they're technically still operating in that market.
Deal Expert
Aug 26, 2001
18145 posts
1741 upvotes
Mississauga, ON
McKinsey wrote: Either way, why would folks be upset? It's a private business (rightfully so) and they should be able to decide whom they want to do business with, just as consumers can by choosing whom they go with.
I agree! Next step, Allstate should stop selling auto insurance to people of Chinese descent. There's no need for RFDers to get upset.
Thanks for that pearl of wisdom, Mr. High-End Consulting Company.

/s
Deal Expert
Feb 24, 2018
27157 posts
37133 upvotes
konfusion666 wrote: Honestly, Allstate could have avoided this whole brouhaha by simply RAISING RATES BIG-TIME in Brampton - rather than "exiting the Brampton market entirely" - and completely sidestep the whole media kerfuffle.

If they doubled or tripled their standard Brampton rate, then they'd effectively not be used by anyone living in Brampton, even though they're technically still operating in that market.
Politicians would pursue Allstate for price gouging, it's far less controversial to just pull out of the dumpster fire.
I aim to be inclusive and considerate of others in my posts. If I fall short of that mark, feel free to let me know in good faith, and where appropriate, I'll edit my posts. Thank you.
Deal Fanatic
Aug 31, 2017
5182 posts
3058 upvotes
konfusion666 wrote: Honestly, Allstate could have avoided this whole brouhaha by simply RAISING RATES BIG-TIME in Brampton - rather than "exiting the Brampton market entirely" - and completely sidestep the whole media kerfuffle.

If they doubled or tripled their standard Brampton rate, then they'd effectively not be used by anyone living in Brampton, even though they're technically still operating in that market.
Not that easy. You have to first file the rates and get approval. They could make their underwriting requirements harder however to qualify.
Deal Fanatic
User avatar
Mar 31, 2017
7069 posts
3383 upvotes
cheapmeister wrote: Why would a TD Bank be selling insurance if they didn't make money? TD didn't always sell insurance, but for some reason they are selling it now.
Been told by an insider that insurers are losing money on Auto insurance for a long time now. What's coming next is either a giant hike in premiums, or an exit for some of the players, and/ore a more robust effort by the government to take over this venture. As is, is not sustainable.
Deal Guru
User avatar
Feb 23, 2008
12939 posts
1862 upvotes
Brampton
*

If you got into an accident and have Allstate Insurance they may jack up your rates sky high or even cancel your policy!
Last edited by MrDisco on May 17th, 2019 8:14 pm, edited 1 time in total.
Reason: quote was removed
Lets Go Blue Jays!!!
Deal Expert
User avatar
Oct 5, 2008
18182 posts
14186 upvotes
Toronto
cheapmeister wrote: Why would a TD Bank be selling insurance if they didn't make money? TD didn't always sell insurance, but for some reason they are selling it now.
TD has been selling auto insurance for at least 20 years under their various companies (TD/Primmum/Meloche Monnex, Canada Life Casualty etc.) it's nothing new
Deal Expert
Feb 24, 2018
27157 posts
37133 upvotes
badOne wrote: Been told by an insider that insurers are losing money on Auto insurance for a long time now. What's coming next is either a giant hike in premiums, or an exit for some of the players, and/ore a more robust effort by the government to take over this venture. As is, is not sustainable.
ICBC is a mess in BC, Ontario doesn't want to follow that model, especially under Doug Ford. Count yourself lucky this is not a bigger issue across Ontario, instead of being centered around Brampton and to a lesser extent, Markham. I never thought there would be a city in Canada I would actively avoid.... until our public policy makers worked their magic in formerly majestic Brampton.

In any case, the market will adapt, and the cost of living will rise to reflect the challenges of living in that community.

God bless.
I aim to be inclusive and considerate of others in my posts. If I fall short of that mark, feel free to let me know in good faith, and where appropriate, I'll edit my posts. Thank you.
Deal Addict
User avatar
May 22, 2016
2459 posts
682 upvotes
Ontario
Driving on the 410 from Boivard to Steeles in Brampton has to be the scariest highway section in the GTA. I was happy to see somebody pulled over in the HOV lane for only one person the other day but was almost hit three times by morons who don't know not to cross into the lane.

Top