Ford says he'll end 'unfair' insurance premiums based on Ontario postal codes
Ford says he'll end 'unfair' insurance premiums based on Ontario postal codes
Ontario drivers could soon see the end of "unfair" insurance policies with premiums based on postal codes, Premier Doug Ford said Thursday.
The Ford government has been implementing driver-friendly policies lately by cancelling licence plate renewal fees, removing some tolls from highways and cutting the gas tax.
But there is another common complaint the government appears ready to tackle – postal code discrimination, and many drivers are upset their premiums could go up based on where they live, even if they have a clean driving record with no accidents or tickets.
At a Thursday press conference, Premier Doug Ford appeared ready to take on the issue, calling insurance premiums based on where you live “unfair” and saying they could be coming to an end.
"I know we’re working on a plan for insurance companies, as far as I’m concerned, that’s totally unfair for the people of Brampton, of Scarborough, they're going after these people based on their postal code,” he said at a press conference.
“That’s going to come to an end real quick. They have to treat people fairly.”
Matt Hands, director of insurance with RateHub, an insurance comparison website, told CTV News Toronto it “doesn’t make sense that someone with a clean driving record has to pay more because they live in a certain area.”
He said changing the insurance system will take time and he believes if people paying higher rates get an insurance decrease, other drivers may see their rates go up.
"They are going to have to spread the risk so it might mean that people who have been paying a lower rate in say London or Ottawa might see an increase to help offset the decreases in the other areas because insurance is all about balancing the risk,” he said.
In the provincial budget released in April the Ford government also said it plans to crack down on insurance fraud, create more choices for consumers and enhance fairness in the system.
While the premier said insurance reform is coming, there's no timeline as to when it could happen. Still, after years of talking about it, substantial changes could be coming to the province's insurance system.
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Canada's year-over-year inflation rate slowed to 7.6 per cent in July, with the deceleration largely driven by a decline in gas prices. The inflation rate hit a nearly 40-year-high of 8.1 per cent in June, but economists were widely expecting inflation to have since slowed.
Canada's year-over-year inflation rate slowed to 7.6 per cent in July, with the deceleration largely driven by a decline in gas prices. The inflation rate hit a nearly 40-year-high of 8.1 per cent in June, but economists were widely expecting inflation to have since slowed.
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Canada's year-over-year inflation rate slowed to 7.6 per cent in July, with the deceleration largely driven by a decline in gas prices. The inflation rate hit a nearly 40-year-high of 8.1 per cent in June, but economists were widely expecting inflation to have since slowed.
