Automotive

[Ontario] Will this work for Bramptonians? Private members' bills aim to end auto insurance postal code 'discrimination

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  • Oct 25th, 2018 12:23 pm
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[Ontario] Will this work for Bramptonians? Private members' bills aim to end auto insurance postal code 'discrimination

https://www.cbc.ca/news/canada/toronto/ ... -1.4863724

A pair of private member's bills set to be introduced today aim to stop auto insurance companies from using a person's postal code or phone number to set premiums.

Legislators from both the Progressive Conservative government and the NDP say they will introduce their own pieces of legislation today to stop the practice that they called discriminatory.

Parm Gill, a Tory legislator from Milton, says the practice means drivers from the suburbs around Toronto pay higher rates than people in other areas of Ontario.

Gill says his bill would ensure drivers are evaluated based on their driving record and not where they live.

NDP legislator Gurratan Singh says his bill, if passed, would require the Financial Services Commission of Ontario to refuse to approve risk classification systems that don't consider the Greater Toronto Area as a single geographic region.

Singh says his bill would result in lower insurance rates for GTA drivers.
Last edited by alanbrenton on Oct 19th, 2018 1:20 pm, edited 4 times in total.
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I'm no insurance expert, but the way I understand Insurance pricing is, it's done on groups where everyone shares the risk. That being said, would it be safe to assume for those in low risk area's may see increases as they will now share the rates for high risk area's like Brampton.
Last edited by Kkhan15 on Oct 16th, 2018 10:26 am, edited 1 time in total.
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Kkhan15 wrote: I'm no insurance expert, but the way I understand is Insurance pricing is done on groups where everyone shares the risk. That being said, would it be safe to assume for those in low risk area's may see increases as they will now share the rates for high risk area's like Brampton.
That's what I'm thinking too ...
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Then everyone else's rate will increase. Someone's gotta pay for the premiums...

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I think they are taking these "discrimination" statements way too far. Soon, we will be able to say, a company didn't hire me, that's "experience discrimination".

Or a landlord rejected me, that's "Financial discrimination"

I'll say the unpopular thing here, we all know Brampton is now largely inhabited by people from India.

According to insurance companies, Brampton has a higher rate of accidents. So are India people driving worse than others?

I believe its due to which ever country they came from. How's the driving in India? I lived in Hong Kong before and I know driving there is aggressive. I've never been to India, so I don't know. But I'm sure ppl on here have.
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It's funny the people that put these bills forward , don't have the balls to discuss the biggest discrimination in insurance industry...gender discrimination.
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That would be great news for the insurance companies. Now they raise everyone rates to Brampton levels.
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I don't get it... How is this discrimination?

If you live there it means you drive there and park there at night and if that area has a higher than average number of claims it's obvious the rate would go up. Doesn't the insurance industry have stats on this stuff?

If you live in Mississauga and drive in to Toronto for work every day then you're obviously a higher risk for a claim than someone who lives in Northern Ontario or something. Of course your insurance is going to be higher!
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Gurratan Singh represents a Brampton riding. Coincidence? lol
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lennyandcarl wrote: I don't get it... How is this discrimination?

If you live there it means you drive there and park there at night and if that area has a higher than average number of claims it's obvious the rate would go up. Doesn't the insurance industry have stats on this stuff?

If you live in Mississauga and drive in to Toronto for work every day then you're obviously a higher risk for a claim than someone who lives in Northern Ontario or something. Of course your insurance is going to be higher!
This is Jagmeet Singh's brother. Neither of them is a stranger to alarmist rhetoric when it serves their own nonsensical ends. In their eyes it's blatant racial discrimination if your grandparents in York on a fixed income who only drive to the shops once a week pay less than the Brampton driver who spends his days crashing into things while riding his motorcycle without a helmet and then claiming as much as he can in medical bills for 'pain and suffering'.

They can't think of any other reason why insurance companies would charge people who live in the city with the highest rate of auto crashes in the country more for car insurance. According to them everyone else in the GTA needs to pay for their dangerous driving or else we're all racist.
Last edited by Piro21 on Oct 16th, 2018 11:39 am, edited 1 time in total.
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Piro21 wrote: This is Jagmeet Singh's brother. Neither of them is a stranger to alarmist rhetoric when it serves their own nonsensical ends. In their eyes it's blatant racial discrimination if your grandparents in York on a fixed income who only drive to the shops once a week pay less than the Brampton driver who spends his days crashing into things while riding his motorcycle without a helmet and then claiming as much as he can in medical bills for 'pain and suffering'.
Oh lord, don't even get me started on the helmet thing.

This is the biggest problem with Canada's multiculturalism. You can't go to the nth degree to please everyone. There are rules of the land and it has to be followed, across the board, regardless of where you came from.

You CHOSE to come HERE, no one forced you to. You need to abide by certain rules. Rules is what made Canada, Canada. We have totally lost our identity.
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Want to pay less, live and/or commute in an area with fewer motor vehicle accidents and less automotive fraud.
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In the end for areas who pay less today, they will pay more. Just because you outlaw the ability rate based on location, doesn't change the fact that these areas have higher rates of frequency and severity. What FSCO should really do is allow companies to expand past 55 territories so that rates can be refined further. If companies were allowed to use more than 55 territories in Ontario, rather than having Brampton split into 1-2 territories todau, you could slice it more accurately thus providing some rate relief for clients in problem areas. The issue here is the limitation imposed by the regulator. For example, for all postal codes starting with M, the maximum allowed number of territories is 10. The population in M postal codes probably exceeds 40% of the provincial population yet companies are only allowed to use less than 20% of the allowed territories in that area.
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in a perfect world.. that would be the ticket
peelhic wrote: In the end for areas who pay less today, they will pay more. Just because you outlaw the ability rate based on location, doesn't change the fact that these areas have higher rates of frequency and severity. What FSCO should really do is allow companies to expand past 55 territories so that rates can be refined further. If companies were allowed to use more than 55 territories in Ontario, rather than having Brampton split into 1-2 territories todau, you could slice it more accurately thus providing some rate relief for clients in problem areas. The issue here is the limitation imposed by the regulator. For example, for all postal codes starting with M, the maximum allowed number of territories is 10. The population in M postal codes probably exceeds 40% of the provincial population yet companies are only allowed to use less than 20% of the allowed territories in that area.
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never knew phone numbers set premiums?

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alanbrenton wrote: https://www.cbc.ca/news/canada/toronto/ ... -1.4863724

A pair of private member's bills set to be introduced today aim to stop auto insurance companies from using a person's postal code or phone number to set premiums.

Legislators from both the Progressive Conservative government and the NDP say they will introduce their own pieces of legislation today to stop the practice that they called discriminatory.

Parm Gill, a Tory legislator from Milton, says the practice means drivers from the suburbs around Toronto pay higher rates than people in other areas of Ontario.

Gill says his bill would ensure drivers are evaluated based on their driving record and not where they live.

NDP legislator Gurratan Singh says his bill, if passed, would require the Financial Services Commission of Ontario to refuse to approve risk classification systems that don't consider the Greater Toronto Area as a single geographic region.

Singh says his bill would result in lower insurance rates for GTA drivers.
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so i don't live in Brampton, nor do i ride a motorcycle. When i used to ride, I wore a helmet.

So, in order for Bramptonians to pay less...i will have to pay more.....despite the fact I'm a far lesser risk than the stats suggest the average Bramptonian is.

Makes perfect sense in this Doug Ford, post apocalyptic world.

:facepalm:
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So they want everyone to pay the same regardless of postal code but it is fine that I pay twice as much just for being a man?
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lennyandcarl wrote: I don't get it... How is this discrimination?

If you live there it means you drive there and park there at night and if that area has a higher than average number of claims it's obvious the rate would go up. Doesn't the insurance industry have stats on this stuff?

If you live in Mississauga and drive in to Toronto for work every day then you're obviously a higher risk for a claim than someone who lives in Northern Ontario or something. Of course your insurance is going to be higher!
They do have stats on this stuff. Detailed by Postal Code. That’s the problem according to the socialists pushing for these new regulations. Apparently, tracking where collisions & claims happen more discriminates against the people where collisions & claims happen more.

If this goes through, not only will rates go up for everybody else but choice will surely go down as some insurers will inevitably decide to pull out if the Ontario market.
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COSMIC5 wrote: never knew phone numbers set premiums?

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Is there anything that says they can't?

What happens if someone wants an insurance quote for an address they don't live at (like registering their cars at their cottage or other common scams)

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