Ontario is Canada’s most populous province, and it’s also one of the most expensive places in the country to insure a car. In fact, Ontario drivers pay among the highest premiums in Canada. In a bid to make auto insurance more affordable for Ontario drivers, the government has set a target of reducing insurance rates by 15% by summer 2015.
Why are Ontario’s Auto Insurance Rates so High?
Ontario’s high auto insurance rates are due to a number of factors, including fraud, high claims costs, and a lack of competition among insurers. Ontario has a no-fault insurance system, which means that drivers deal with their own insurance company regardless of who is at fault in an accident. This system is meant to reduce the number of lawsuits and speed up claims processing, but it has also led to higher premiums for drivers.
How Will Ontario Reduce Auto Insurance Rates?
The Ontario government has introduced a number of reforms aimed at reducing auto insurance rates. These include:
- Reducing the maximum interest rate that insurers can charge on monthly premium payments
- Introducing new rules to crack down on fraud and abuse in the insurance system
- Increasing competition among insurers by making it easier for new companies to enter the market
- Introducing new regulations to reduce the cost of claims, including capping the amount that can be charged for medical assessments
These reforms are expected to help reduce insurance rates for Ontario drivers. However, it remains to be seen whether the 15% reduction target will be met by summer 2015.
What Does This Mean for Ontario Drivers?
If the government is successful in reducing auto insurance rates by 15%, Ontario drivers could see significant savings on their premiums. However, it’s important to remember that auto insurance rates are influenced by a number of factors, including your driving record, the type of car you drive, and where you live. So while the reforms may help reduce rates overall, individual drivers may not see a significant reduction in their premiums.
What Can Ontario Drivers Do to Save Money on Auto Insurance?
While the government’s reforms may help reduce auto insurance rates, there are also things that Ontario drivers can do to save money on their premiums. These include:
- Shopping around for the best rate
- Increasing your deductible
- Reducing your coverage if you have an older car
- Using winter tires
- Driving safely and maintaining a good driving record
By taking these steps, Ontario drivers can help keep their auto insurance rates as low as possible.
Conclusion
The Ontario government’s goal of reducing auto insurance rates by 15% by summer 2015 is an ambitious one, but it’s a welcome move for Ontario drivers who have been struggling with high premiums for years. The government’s reforms, combined with individual efforts to save money on auto insurance, should help make driving more affordable for everyone in Ontario.