Ontario’s plan was to reduce insurance rates for drivers by eight percent this year and by 15 percent over a two-year period, reported CBC News.
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Ontario’s Plan to Reduce Insurance Rates for Drivers
In September 2013, Ontario announced its release of the Auto Insurance Cost and Rate Reduction Strategy. The plan’s purpose is to highlight how the agency will meet its goal to reduce insurance rates for drivers by an average 15 per cent, with at least an eight percent reduction by August 2014.
The Auto Insurance Cost and Rate Reduction Strategy details six ways Ontario aims to accomplish this.
- give Superintendant of Financial Services “authority to require insurers to re-file rates.”
- crack down on insurance fraud, particularly from among health clinics that falsely invoice insurers.
- enforce the Superintendent’s Guidelines on accident benefits to reduce industry costs.
- explore and facilitate insurer cost reduction plans, such as reassessing the collisions repair practices.
- require insurance companies to offer discounts to safe drivers.
- and, ensure that cost savings are put into place in all regions of Ontario.
Advice for Lowering Insurance Rates for Drivers
“The government has a practical plan to protect consumers and help save them money on auto insurance. We have worked hard to reduce costs in the system and we continue to take further action to help ensure that those savings are being passed on to consumers,” said Minister of Finance Charles Sousa.
Even still, rates have only been reduced by 5.44 percent since the initiative began last year, reports CTV News Ontario. While awaiting new legislation to be implemented and take effect, Sousa recommends that driver shop around for the best deals on insurance. “It’s up to consumers to choose the best possible rate that they can get,” Sousa explains.
When choosing an auto insurance company, call several reputable insurers in Ontario to obtain rate information. When requesting quotes, inquire about discounts that might be applicable for you. This might ultimately help reduce insurance rates for drivers in the province.
Challenges in the Ontario Insurance Industry
There’s a division in the insurance industry that’s cause for concern for both the companies and the consumers. While the insurance companies and officials are claiming that fraud is the main culprit in elevated insurance premiums, insurer profits are still continually high.
“This is a gift to the insurance companies, this is a way of reducing their costs once again but there’s absolutely no guarantee that this will result in a reduction in rates for drivers,” said NDP critic Jagmeet Singh according to CTV News Ontario.
Insurance companies may try to do everything they can to cut corners to reduce their rates, but their tactics may not wind up actually benefiting drivers.
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Legal Help with Auto Accident Settlements in Ontario
Changes in auto insurance could mean reduced settlements for injured drivers. In the interim, as the Ontario auto insurance industry is undergoing reform, drivers who are injured in accidents will want to take all necessary steps to ensure they obtain a fair amount of compensation for damages to which they are entitled.
If you or your loved one were recently involved in an auto accident in Ontario, contact Preszler Law to set up a free legal consultation. Contact us today at 1-800-JUSTICE®.