Jul 16, 2015
By Jane Brown
It turns out your auto insurance premiums won’t be going down 15 percent by next month as the governing Ontario Liberals promised two years ago.
Finance Minister Charles Sousa pledged in August of 2013 that it would take two years to fulfill the promised cut of 15 percent, or an average of $225 of annual savings.
Instead, Ontario’s 9.4 million drivers have seen a reduction so far of just over 6.5 percent.
A statement released by Sousa’s office says the plan to tackle auto insurance fraud and reduced costs is working, but he admitted the government wants to go further.
The Financial Services Commission of Ontario reported the average rates for the past quarter actually went up slightly rather than going down.
Ralph Palumbo of the Insurance Bureau of Canada says “companies must apply to the Financial Services Commission of Ontario for any rate increases and prove they are needed.”
He blames the New Democrats for asking for, and getting, the government to go along with the 15 percent figure which he says was just pulled out of thin air.
More on this topic coming up on Zoomer Radio’s Goldhawk Fights Back after the 11am news when Steve Kee, Director, Media and Digital Communications at the Insurance Bureau of Canada, will be Dale’s first guest.