Liberal Budget Aims for 15% Auto Rate Reduction

The government has proposed an action plan to reduce auto rates for Ontario drivers by an average of 15%, which could result in savings of approximately $225 per year for the average household.

If passed, some of the key legislative amendments that will be introduced are,

  • A premium reduction of 15% on average within a period of time to be prescribed by regulation
  • Require insurers to offer lower premiums for consumers with safe driving records
  • Give the Financial Services Commission of Ontario (FSCO) the authority to license and oversee business practices of health clinics and practitioners who invoice auto insurers
  • Increased auto insurance fraud targeting
  • Steps will be taken to reduce the current Accident Benefits mediation backlog, which is resulting in delays of up to several months for injured persons to have their cases heard

Regarding when the consumer could see the reductions, the Liberals have indicated it is a complex issue, and not something they can easily put a time frame to.

For more complete details of the 2013 Ontario budget, click on the Ontario Ministry of Finance link below:

http://www.fin.gov.on.ca/en/budget/ontariobudgets/2013/bk2.html

Canadian Underwriter:

http://www.canadianunderwriter.ca/news/ontario-government-proposes-changes-to-meet-15-auto-insurance-premium-reduction/1002266386/

Globe and Mail:

http://www.theglobeandmail.com/news/politics/ontario-to-cut-auto-insurance-premiums-by-15-per-cent/article11633312/

CBC News:

http://www.cbc.ca/news/canada/toronto/story/2013/04/30/toronto-ontario-budget-auto-insurance-drop.html