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Ontario Government Works To Lower Auto Insurance

Web posted on August 23, 2013

Ontario is taking action to protect consumers and help them save money on auto insurance through its Auto Insurance Cost and Rate Reduction Strategy. The Auto Insurance Cost and Rate Reduction Strategy was introduced as part of the 2013 Ontario Budget.

"The government has a practical plan to protect consumers and help save them money on auto insurance. We have worked hard to reduce costs in the system and we continue to take further action to help ensure that those savings are being passed on to consumers." Charles Sousa, Minister of Finance.

Within the next two years, Ontario is targeting an average 15 per cent auto insurance rate reduction with an average eight per cent reduction target by August 2014. Consumers are encouraged to explore ways of further reducing their rates by shopping around and reviewing their policies with their insurance companies, as discounts may be available for such things as having winter tires, completing a recognized driver training program, bundling home and auto insurance, and insuring all vehicles with the same company.

The province will achieve these reductions by:
--> Providing the Superintendent of Financial Services with authority to require insurers to re-file rates

--> Continuing to crack down on fraud, including licensing health clinics that invoice auto insurance companies

--> Reducing unexpected costs by making the Superintendent's Guidelines on accident benefits binding

--> Exploring other cost reduction initiatives, including provincial oversight of the towing industry and addressing collision repair practices

--> Continuing to require insurers to offer discounts for consumers with safe driving records

--> Helping ensure that all regions of Ontario benefit fairly from cost savings.

To ensure greater transparency and accountability, independent experts will report on how quickly savings are passed on to consumers and the effectiveness of the marketplace in providing affordable premiums to consumers.

The government will take further action as required and all necessary steps to achieve the 15 per cent average rate reduction target. In addition to the Auto Insurance Cost and Rate Reduction Strategy, the Hon. J. Douglas Cunningham has been appointed to lead a review of Ontario's auto insurance dispute resolution system and make recommendations on transforming the current system.

These measures build on previous reforms that stabilized auto insurance rates and are part of the government's plan to ensure a fair and affordable auto insurance system for Ontario's nine million drivers and help people in their everyday lives.

With the measures it is putting into place, the government expects the report from the Financial Services Commission of Ontario in January 2014 to show an approved rate reduction of three to five per cent.

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