What new auto insurance reforms will mean for Ontarians, if they get introduced
Ontario has among the highest rates for auto insurance premiums in Canada -- just below Alberta and Nova Scotia -- however, the introduction of an 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 more 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 lower insurance reforms, according to provincial budgets.
In the meantime, rates have been increasing. A report by Ratesdotca suggests that insurance premiums in Ontario have risen about 12 per cent from 2021 to 2023, averaging at about $1,766.
That number has increased to an average cost of $2,299 for Ontarians, according to a 2024 report by hellosafe.
Part of the drive behind auto insurance increases is auto theft. From 2018 to 2022, Ontario experienced a 329 per cent increase in auto theft claims costs following a 50 per cent increase in auto thefts.
More so, in 2023 alone, the province experienced over $1 billion in auto theft claims cost.
WHAT WILL THE REFORMS MEAN FOR ONTARIO DRIVERS
Introducing his budget on Monday, Finance Minister Peter Bethlenfalvy said that insurance reforms could provide more choice and flexibility for drivers, keeping their premiums more affordable.
“We are also moving ahead 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 absolutely welcomes the introduction, this first step in getting drivers more control and more choice over their insurance,” said the Insurance Bureau of Canada’s Vice-President for Ontario and Atlantic Canada, Amanda Dean.
One way that additional options could provide financial relief for drivers is by allowing them to opt-out of coverage already covered through their work.
Rhona DesRoches, chair of FAIR Association of Victims for Accident Insurance Reform, said that “a lot of people have been paying double for coverage they have at work,” meaning that they don’t get to use the auto insurance they pay for.
She says that the association hopes that drivers will be given the option, as some consumers might not realize what their coverage entails if they are being offered multiple packages.
CTVNews.ca Top Stories
Loblaw leaders push back on 'misguided criticism' of grocer as boycott begins
Loblaw's new chief executive, as well as chairman Galen Weston, pushed back on what they called 'misguided criticism' of the grocer as a push to boycott the company gains steam online.
TD Bank hit with $9.2M penalty after failing to report suspicious transactions
Canada's financial intelligence agency says it has levied a $9.2-million penalty against The Toronto-Dominion Bank for non-compliance with money laundering and terrorist financing measures as the bank also faces compliance investigations in the U.S.
Orangutan observed treating wound using medicinal plant in world first
Scientists working in Indonesia have observed an orangutan intentionally treating a wound on their face with a medicinal plant, the first time this behavior has been documented.
This Canadian restaurant just lowered its prices. Here's how it did it
A Canadian restaurant lowered its prices this week, and though news of price tags dropping rather than climbing sounds unusual, the business strategy in this case is not, according to experts in the field.
There's a limit to how much interest rates in Canada and U.S. can diverge: Macklem
Bank of Canada governor Tiff Macklem says Canadian interest rates don't have to match U.S. or global rates, but there is a limit to how much they can diverge.
Prince William and Kate release photo of daughter Charlotte to mark ninth birthday
Prince William and his wife Kate released a picture of their daughter Charlotte to mark the princess's ninth birthday on Thursday.
Doctors concerned about potential spread of bird flu in Canada
H5N1 or avian flu has been detected at dozens of U.S. dairy farms and Canadian experts are urging surveillance on our side of the border too.
Airbnb's Icons allow you to drift off in the 'Up' house or rest in Prince's 'Purple Rain' mansion
The vacation destination rental company announced a new category of 'Icons,' a collection of 'extraordinary experiences hosted by the greatest names in music, film, television, art, sports, and more.'
Five human skeletons, missing hands and feet, found outside house of Nazi leader Hermann Goring
Archeologists have unearthed the skeletons of five people, missing their hands and feet, at a former Nazi military base in Poland.