Consumers’ Association Study on Auto Insurance Rates Shows Consumer Harm
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Ontario’s Auto Insurance Rates are 45% Higher Than in British Columbia
The Consumers’ Association of Canada released the Ontario results of a national study on auto insurance rates it has conducted across Canada. This release also provides a detailed comparison of rates between Ontario, Alberta and British Columbia. This release used 3,776,997 rate quotes across 300 diverse rating groups representing the key variables that affect auto insurance rates such as age, gender, location, claims, vehicle and driving record.
“This is the largest independent study ever to have been conducted on auto insurance rates in Canada,” said Mr. Bruce Cran, President of the
Consumers’ Association. “The study found that consumers in Ontario pay 45% more for their auto insurance than BC consumers,” said Mr. Cran. The average auto insurance rate in Ontario was $2,383 while it was $1,324 in BC.
“Consumers in Ontario have been clearly harmed by outrageous price
increases for auto insurance over the past three years,” said Mr. Cran.
“Victims of crashes have also been impacted by the Ontario Government’s
actions of imposing a $30,000 deductible on benefits paid to them. Innocent victims of crashes have suffered at the hands of the insurance industry while this industry continues to put billions of dollars of profits in its pockets,” said Mr. Cran.
The high rates are not confined to Toronto. “Across Ontario’s cities such as Thunder Bay, Sault Ste. Marie, Sudbury, Windsor, Guelph, London, Kingston and Ottawa consumers are paying extraordinarily high rates,” said Mr. Cran.
Due to investigations by regulators of the insurance industry a pattern
has emerged among so-called independent brokers that is clearly not in the
consumers interest. With almost a hundred auto insurance companies operating in Ontario a typical broker may only sell policies from one or two insurance companies. “Many of these brokerage firms have financial ties to insurance companies which limits real consumer choice,” said Mr. Cran.
“An overwhelming compelling message has emerged from the Study for consumers in Ontario,” said Mr. Cran. “Shop widely among many brokers and use the internet to find the lowest auto insurance quote.”
In British Columbia, there has been repeated calls by rightwing think-tanks for more private auto insurance, and even the privatization of ICBC (Insurance Corporation of British Columbia).
To download the study (in PDF format), click here.
@ July 19, 2005