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
Poilievre unrepentant over calling Trudeau 'wacko' as his MPs say Speaker should resign
Conservative Leader Pierre Poilievre says he does not regret calling Prime Minister Justin Trudeau 'wacko,' and now his MPs are renewing calls for the House of Commons Speaker to resign, this time over ordering the Official Opposition leader to leave the chamber.
Is it cold, flu or norovirus? Symptoms explained
The highly contagious norovirus is spreading across Canada, with some symptoms overlapping with other viruses. CTVNews.ca spoke with a health expert to find out how you can tell you have norovirus, the most common form of stomach flu, and what to do if you have it.
Ontario's police watchdog continues probe of high-speed pursuit involving fatal crash
The investigation continues into a collision that killed two grandparents and their infant grandchild during a high-speed police chase on the wrong way of Highway 401 east of Toronto.
Stranded cruise passengers in Spain race to catch up with their ship
A month after eight Norwegian Cruise Line passengers were stranded in Africa when their ship left without them because they were late getting back, a U.S. couple – ages 84 and 81 – were also left behind by the cruise line in Spain.
London Drugs expected to give update on store status following 'cybersecurity incident'
Days after dozens of London Drugs locations closed due to a 'cybersecurity incident,' a spokesperson for the company says an update on the stores' status is expected Wednesday morning.
No criminal charges after 4 newborn bodies found in Boston freezer
A prosecutor in Massachusetts won't seek criminal charges against anyone, two years after four newborns were found in a freezer in a South Boston apartment.
Anger can harm your blood vessel function, study shows
Stress and anger can have a negative impact on cardiovascular health, studies have shown. New research points to just how the mechanism may work.
Freeland leaves capital gains tax change out of coming budget implementation bill, here's why
Deputy Prime Minister and Finance Minister Chrystia Freeland will be tabling yet another omnibus bill to pass a sweeping range of measures promised in her April 16 federal budget, though left out of the legislation will be the government's proposed capital gains tax change.
Ontario woman surprised after 20-year-old fines suddenly tank credit score
An Ontario woman says that she was shocked when fines from 20 years ago suddenly tanked her credit score last week, but the situation may not be as unusual as it seems, according to at least one debt expert.