It’s uncertain how Premier Ford will tackle Ontario’s increasing auto insurance rates.
Now that the election is over and Doug Ford is Ontario’s new premier, how will your auto insurance premiums be affected? Although the subject of auto insurance was broached by both the Liberals and NDP at various times throughout the campaign, it’s uncertain what the PCs plan to do now that they’re forming Ontario’s new government. The PC party’s Plan for the People does not speak to the topic of auto insurance in Ontario.
It is a topic however, that will eventually need to be addressed by the new premier, as auto insurance premiums in the province are on the rise. In each of the two most recent quarterly announcements, the Financial Services Commission of Ontario (FSCO) approved rates that increased: in Q4 2017, rates increased on average 1.03 per cent and in Q1 2018 they increased 2.23 per cent. It is a troubling trend, especially when you consider that Ontario drivers pay the most for their auto insurance coverage compared to drivers elsewhere in Canada.
Will location-based auto insurance pricing be eliminated?
Prior to Doug Ford becoming leader of the PCs, the party’s platform spoke to ending auto insurance pricing that takes into consideration your address. As it works today, drivers in urban settings typically pay more for their insurance than drivers in rural areas. The rationale for this is that in high population areas where there are more drivers on the roads, insurer’s generally see more claims; and with more claims come higher rates. To keep premiums affordable in Ontario’s cities, the party had stated they would eliminate location-based auto insurance pricing. Although it was not a component of the party’s platform leading up to the election, it is certainly possible that some version of this approach will be revisited when the time comes.
Ontario has nearly 10 million drivers
There are nearly 10 million drivers in Ontario, and auto insurance affects every one of them. As a result, you can count on it being a topic that Premier Ford will have to tackle, perhaps sooner than expected. In July when FSCO releases the Q2 2018 approved rate changes, if rates have continued to increase, Ontario’s new premier will likely have address how he plans to help drivers keep their auto insurance rates affordable.
Spend less on your auto insurance today: Compare quotes for a lower rate
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