What Higher Car Insurance Rates Means For Ontarians
As you know, drivers in the province of Ontario must have car insurance. Despite increases in premiums over the years, the benefits that insurance companies pay out are decreasing. Since 2010, insurance companies restrict most people to only $3,500 in rehabilitation coverage. Did you also know that Ontario is the only province in Canada with a $38,000 deductible on general damages? This means that if you get into a car accident, the at-fault driver’s insurance company automatically reduces your pain and suffering damages by ,000.00! This is one of over a dozen cuts the insurance companies have made to your rights and benefits since 2010.
Why are car insurance rates going up?
The government made a promise back in 2013 to reduce the cost of car insurance for Ontarians by 15 per cent within a two-year timespan. Unfortunately, this promise could not be kept. Premier Kathleen Wynn described this as a “stretch goal.” According to Ontario’s auto insurance advisor, Ontario has the highest auto insurance premiums in Canada. A CBC article from April 2017 reveals that this is unfair, as Ontario has one of the lowest car accident rates. Another CBC journalist found that five years ago, Ontario’s injury rate was 62.1 per 10,000 licensed drivers. At the time, this was the lowest rate in Canada. Ontario’s fatality rate (0.54 per 10,000 licensed drivers) was the second lowest in North America. Former Workplace Safety and Insurance Board CEO David Marshall wrote that despite consistent reductions in automobile accidents, especially serious ones, the cost of claims has consistently risen, thanks to “one of the least effective insurance systems in Canada.” So why is it that Ontario’s roads are the safest in the country, yet drivers pay the highest car insurance premiums? Marshall stated that there is a significant leakage of funds from the system from claims totalling about .4 billion a year, with much of those insurance benefits not going directly to those involved in accidents.
Why are all these cuts happening?
Long story short – the government is trying to save the insurance companies money. All of the cuts to benefits made since 2010 are simply meant to reduce costs for insurance companies. The solution? It’s election time. Ask your local candidates what they intend to do about protecting the rights of car accident victims. Ask them to stand up for the rights of car accident victims and the premium-paying public.
For more information, visit the Ontario Trial Lawyers Association website. The non-profit association advocates for the rights of those who have suffered injury and loss through the wrongdoing of others. To book a free, no-obligation consultation appointment with Injury Ottawa, click here.
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Frequently Asked Questions
Why are Ontario vehicle insurance rates so high?
The high vehicle insurance rates in Ontario are primarily due to increasing claims costs, limited benefits, and high administrative expenses, which have led to rising premiums since 2010. Additionally, the province's regulatory framework contributes to these elevated costs.
Do speeding tickets increase insurance rates in Ontario?
Speeding tickets do increase insurance rates in Ontario. Insurance companies view speeding violations as indicators of risky driving behaviour, leading to higher premiums for those with tickets on their record.
What factors affect Ontario car insurance rates?
The factors affecting Ontario car insurance rates include the driver's age, driving history, type of vehicle, location, and the level of coverage chosen. Additionally, the increasing costs of claims and regulatory changes also play significant roles in determining premiums.
How does age affect vehicle insurance rates in Ontario?
Age significantly influences vehicle insurance rates in Ontario. Generally, younger drivers face higher premiums due to their inexperience and higher risk of accidents, while older, more experienced drivers typically benefit from lower rates.
How are auto insurance rates determined in Ontario?
Auto insurance rates in Ontario are determined based on various factors, including the driver's age, driving history, type of vehicle, location, and the level of coverage chosen. Insurers assess these elements to calculate premiums.
Why are Ontario auto insurance rates so high?
The high auto insurance rates in Ontario are primarily due to increasing claims costs, limited benefits since 2010, and a competitive market that drives premiums up while reducing coverage options for policyholders.
How can I lower my Ontario auto insurance rate?
To lower your Ontario auto insurance rate, consider comparing quotes from different providers, maintaining a good driving record, increasing your deductibles, and taking advantage of discounts for bundling policies or completing driver safety courses.
What causes fluctuations in Ontario insurance rates?
The causes of fluctuations in Ontario insurance rates include factors such as changes in government regulations, the frequency and severity of claims, economic conditions, and the overall risk assessment of drivers.
How do claims impact future insurance premiums?
Claims can significantly impact future insurance premiums. When a driver files a claim, insurers often view them as a higher risk, which may result in increased premiums when the policy is renewed.
Are there discounts for safe driving in Ontario?
Discounts for safe driving are available in Ontario. Many insurance companies offer these incentives to drivers who maintain a clean driving record, encouraging safe practices and potentially lowering premiums.
What role does credit score play in rates?
The role of credit score in determining rates is significant. Insurers often use credit scores to assess risk, meaning a higher score can lead to lower car insurance premiums, while a lower score may result in higher rates.
How do insurance companies assess risk in Ontario?
Insurance companies assess risk in Ontario by evaluating various factors, including the driver's history, the type of vehicle, location, and claims history, to determine the likelihood of accidents and potential costs associated with insurance claims.
What are common misconceptions about Ontario insurance rates?
Common misconceptions about Ontario insurance rates include the belief that higher premiums guarantee better coverage and that all drivers pay similar rates. In reality, rates vary significantly based on individual factors and the benefits have diminished over the years.
How can I appeal a denied insurance claim?
The process to appeal a denied insurance claim involves reviewing your policy, gathering supporting documents, and submitting a formal appeal to your insurer. Ensure you clearly outline why you believe the claim should be approved.
What is the impact of weather on insurance rates?
The impact of weather on insurance rates is significant. Severe weather events can lead to increased claims, prompting insurers to raise premiums to cover potential losses and maintain profitability.
Do insurance rates differ for urban versus rural areas?
Insurance rates do differ for urban versus rural areas. Typically, urban areas face higher premiums due to increased traffic, accident rates, and theft, while rural areas generally enjoy lower rates due to less congestion and fewer claims.
How often should I review my insurance policy?
You should review your insurance policy regularly to ensure it meets your current needs. Ideally, this should be done annually or whenever significant life changes occur, such as moving, changing jobs, or acquiring new assets.
What are the benefits of comparing insurance quotes?
The benefits of comparing insurance quotes include finding the best coverage at competitive rates, ensuring you understand your options, and potentially saving money on premiums. This process empowers you to make informed decisions about your car insurance.
How does the type of vehicle affect rates?
The type of vehicle affects rates by influencing factors such as repair costs, safety ratings, and theft risk. Generally, high-performance or luxury vehicles tend to have higher insurance premiums due to these increased risks.
What is the process for filing an insurance claim?
The process for filing an insurance claim involves notifying your insurance company as soon as possible, providing necessary documentation, and completing any required forms. It’s important to keep records of all communications and follow up on the status of your claim.
How do insurance companies calculate accident rates?
Insurance companies calculate accident rates by analyzing historical data on claims, assessing factors such as driver demographics, vehicle types, and accident frequency within specific regions. This statistical analysis helps determine risk levels and set premium rates accordingly.
What are the legal requirements for car insurance?
The legal requirements for car insurance in Ontario include having a minimum of third-party liability coverage of $200,000, which protects you against claims made by others for bodily injury or property damage.
How can I find the best insurance provider?
Finding the best insurance provider involves comparing coverage options, premiums, and customer reviews. Research local companies, seek recommendations, and consider consulting an insurance broker to help navigate your choices effectively.
What factors lead to higher premiums for young drivers?
The factors that lead to higher premiums for young drivers include their lack of driving experience, higher accident rates, and the increased likelihood of claims. These elements contribute to insurers perceiving them as higher risk.
How does driving history influence insurance costs?
Driving history significantly influences insurance costs. Insurers assess factors like past accidents, traffic violations, and claims frequency; a clean record typically results in lower premiums, while a history of incidents can lead to higher rates.
What should I do after an accident regarding insurance?
After an accident, you should promptly report the incident to your insurance company, providing all necessary details. Document the accident scene and gather witness information to support your claim, ensuring you understand your policy's coverage and benefits.
Are there specific policies for high-risk drivers?
Specific policies for high-risk drivers exist to accommodate individuals with a history of accidents or traffic violations. These policies typically come with higher premiums and may include additional coverage options to help manage the associated risks.
How can I ensure adequate coverage for my vehicle?
Ensuring adequate coverage for your vehicle involves assessing your insurance needs based on factors like your driving habits, vehicle type, and personal finances. Consult with an insurance professional to tailor a policy that provides comprehensive protection.
What is the average time to settle a claim?
The average time to settle a claim varies, but it typically ranges from a few weeks to several months, depending on the complexity of the case and the cooperation of all parties involved.
How do insurance rates change with new legislation?
Insurance rates can change significantly with new legislation, as regulations may alter coverage requirements, benefit limits, and overall pricing structures. These changes can lead to either increases or decreases in premiums based on the financial impact on insurance providers.
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