Achi news desk-
Ontario has among the highest rates for auto insurance premiums in Canada – just below Alberta and Nova Scotia – however, the introduction of insurance reform in the provincial budget could soon lower prices.
As part of its 2024 provincial budget, Building a Better Ontario, the Ford government announced plans to move forward with auto insurance reforms. Auto insurance reforms will make some mandatory aspects of accidental coverage optional, provide greater access to benefits and create a more “modern” system enabling more consumer choice.
This is the government’s second attempt in the last five years to reduce insurance reforms, according to provincial budgets.
Meanwhile, rates have been increasing. A report from Ratesdotca suggests that insurance premiums in Ontario have risen by about 12 per cent from 2021 to 2023, averaging about $1,766.
That number has increased to an average cost of $2,299 for Ontarians, according to a 2024 report from hellosafe.
Part of the impetus behind the rise in car insurance is car theft. Between 2018 and 2022, Ontario saw a 329 per cent increase in auto theft claims costs following a 50 per cent increase in car thefts.
More so, in 2023 alone, the state experienced over $1 billion in auto theft claims costs.
WHAT THE AMENDMENTS WILL MEAN FOR ONTARIO DRIVERS
Presenting his budget on Monday, Finance Minister Peter Bethlenvalvy said insurance reforms could give drivers more choice and flexibility, keeping their premiums more affordable.
“We are also moving forward with insurance reforms with more choice and flexibility for drivers to keep their premiums more affordable,” he said.
Not many details have been worked out by insurers, who still need to look at the new rules and build policies around them.
“What we do know is that the industry fully welcomes the introduction, this first step to give drivers more control and more choice over their insurance,” said Amanda Dean, Vice President of the Office of Insurance Canada for Ontario and Atlantic Canada.
One way additional options could provide financial relief to drivers is by allowing them to withdraw from coverage already included in their work.
Rhona DesRoches, chair of the FAIR Victims Association for Accident Insurance Reform, said that “a lot of people have been paying double for the coverage they have at work,” which means they don’t get to use the brick-and-mortar auto insurance they pay for it.
He says the association hopes drivers will be given the option, as some consumers may not realize what their coverage means if they are offered multiple packages.
