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
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.
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.
3 law officers serving warrant are killed, 5 wounded in shootout at North Carolina home, police say
Three officers on a U.S. Marshals Task Force serving a warrant for a felon wanted for possessing a firearm were killed and five other officers were wounded in a shootout Monday at a North Carolina home, police said.
'Shocked and concerned': Calgary principal charged with possession of child pornography
A Calgary elementary school principal has been charged with possession of child pornography, authorities announced Monday.
Health authority confirms cockroaches at B.C. hospital, insists they 'do not bite'
The Vancouver Island Health Authority is downplaying what staff describe as a cockroach infestation in a medical unit of Saanich Peninsula Hospital.
Toronto police arrest 12 people, lay 102 charges in major credit card fraud scheme
Toronto police say 12 people are facing a combined 102 charges in connection with an investigation into a major credit fraud scheme.
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.
Britney and Jamie Spears settlement avoids long, potentially ugly and revealing trial
Britney Spears and her father Jamie Spears will avoid what could have been a long, ugly and revealing trial with a settlement of the lingering issues in the court conservatorship that controlled her life and financial decisions for nearly 14 years.
WATCH 'Double whammy': What happens if you don't file your taxes by the deadline
The clock is ticking ahead of the deadline to file a 2023 income tax return. A personal finance expert explains why you should get them done -- even if you owe more than you can pay.