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
DEVELOPING Statistics Canada says real GDP grew 0.2 per cent in February
Canada's GDP rose 0.2 per cent in February, driven by a rebound in transportation and warehousing, which saw the largest recorded month-to-month rise in over a year at 1.4 per cent.
BREAKING 4 dead, including infant, in wrong-way crash involving police on Ontario's Highway 401
A wrong-way crash on Highway 401 in Whitby, Ont. last night has left four people dead, including an infant, Ontario’s police watchdog says.
NEW Is there a cost to convenience? Canada approves new cancer immunotherapy treatment
A new cancer treatment recently approved in Canada promises to cut treatment time down to just minutes, but experts have differing opinions on whether it's what's best for patients.
Air Canada walks back new seat selection policy change after backlash
Air Canada has paused a new seat selection fee for travellers booked on the lowest fares just days after implementing it.
McGill requests 'police assistance' over pro-Palestinian encampment
McGill University says it has 'requested police assistance' about the pro-Palestinian encampment on its lower field.
Canada's new dental program offering hope of free care to millions but many dentists aren't signed up
A new Canadian dental care program is offering the hope of free care to millions, but while 1.7 million people have signed up for the plan, only about 5,000 dentists have done the same.
Province boots mayor and council in small northern Ont. town out of office
An ongoing municipal strike, court battles and revolt by half of council has prompted the province to oust the mayor and council in Black River-Matheson.
Winner of US$1.3 billion Powerball jackpot is an immigrant from Laos who has cancer
One of the winners of a historic US$1.3 billion Powerball jackpot last month is an immigrant from Laos who has had cancer for eight years and had his latest chemotherapy treatment last week.
King Charles III returns to public duties with a trip to a cancer charity
King Charles III returned to public duties on Tuesday, visiting a cancer treatment charity and beginning his carefully managed comeback after the monarch's own cancer diagnosis sidelined him for three months.