Ontario Car and Auto Insurance News
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Ontario Government Proposes 15% Car & Auto Insurance Premium Reduction - 14/05/2013
The Ontario government plans to see car insurance premiums in Ontario reduced by an average of 15 percent. According to the Insurance Bureau of Canada, Ontario drivers currently pay by far the highest premiums in Canada. Directly related to this fact is that insurance claims in Ontario are 10 times higher than elsewhere in Canada. The Ontario government expects that the proposed changes will benefit over nine million drivers and decrease premiums in Ontario by $1.5 billion annually, or $225 per vehicle on average.
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Ontario auto insurance getting more financial teeth badly needed. Recently, an article appeared in Thompson’s World Insurance News, “Woman who asked consumers to pay premiums in cash not licensed in Ontario”. Now new rules gives insurance regulators power to apply fines for unfair or deceptive acts or practices by any person or entity including insurers, agents, brokers, adjusters and those involved in the provision of goods and services to insurance claimants. Warning to those applying for car insurance in Ontario: stick to credible insurance brokers and agents.
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When it comes to Ontario car insurance, the policy coverage premium rate is largely determined by location, location, location and less so on how one drives. Take for example two identical drivers – same age and sex, same driver history, same car but they live in two very different parts of Ontario. One lives in a place such as Toronto, or better still – Brampton, and the other in Ottawa. The driver living in Brampton pays a far higher rate of Ontario auto insurance when compared to a similar driver in Ottawa. This dated legacy way of rating driver car insurance is being replaced by new technology that measures individual driver behaviors.
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The new laws are tightening and they affect all Ontario drivers who choose to drink and drive. Ontario drivers of age 21 years old or younger will be subject to an automatic 24 hour car driver's license suspension regardless of amount of Blood Alcohol Level (BAC) within their body. In addition new, lower levels of BAC of 0.05 from the historic rates of 0.08 affect all Ontario insured drivers, regardless of age or class. In addition, a convicted driver will see a whopping increase in their Ontario auto insurance rate and punitive costs.
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Third-party auto insurance liability protection or simply “liability” coverage in your Ontario car insurance policy covers you, the driver for any harm and suffering leading to losses that you might cause to others. It’s usually the forgotten part of auto insurance coverage, but in the rare and somewhat probable occurrence, chances are your existing Ontario car insurance policy doesn’t cover you adequately if you cause a third person or party to suffer beyond your policy coverage amount. When are you personally liable if your coverage isn't adequate? Do you have sufficient liability auto insurance policy coverage?
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Young drivers are considered high-risk and pay a much higher rate on their Ontario auto insurance. Young car drivers – those under the age of 25 - get in to about four times more auto accidents than all other drivers on Ontario roads and four times as likely to be involved in a fatal car crash. Graduated licensing, car driver education, defensive driver schools and much higher Ontario car insurance seems to have little impact on these statistics. Ontario car insurance broker expertise aligned with new age predictive modelling has proven to reduce this rate. Imagine a world where each car driver is rated and will pay a specific, custom-tailored car insurance rate which is based on their individual, specific propensity to be involved in an auto insurance claim?
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The basic premise for insurance – any insurance – including Ontario auto insurance is to provide consumers, everyday drivers with an affordable way to deal with uncertainty and possible disasters by sharing the risk among a large pool of like people who face similar concerns and risks. In car insurance coverage, the pool allows for insurance to be sold as a protection for car drivers against basic claims, accidents and the unfortunate unforeseen disaster cases, all designed and intended to protect the driver and family from financial ruin and provide for any needed rehabilitation. Has Ontario car insurance pool - the basic premise of car insurance - drifted too far from this norm, making the system unfair to most with higher-than normal car insurance rates?
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Fraud and abuse have been prevalent in Ontario car insurance for some time, which led to Reforms of 2010. However, many were quick to criticize the Ontario government’s lack of stricter enforcement that would lead to the ultimate benefit of all Ontario drivers. Critics claim that auto insurance rates went up while benefits were greatly reduced, especially with regard to accident benefits. Today we have received the Ontario Auto Insurance Anti-Fraud Task Force Final Report which shows more than promise for Ontario consumers.
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Whilst many critics place Ontario car insurance in negative light, mostly due to perceived failure of auto insurance reforms and much higher Ontario car insurance rates, driver satisfaction with auto insurance claims handling by most Ontario car insurance companies has remained consistently year after year with an overall rating of 85% approval for claims of car accidents. Most drivers feel that they have been treated fairly by Ontario car insurance companies and have been given proper expectations, good communication of steps involved and process from the onset to conclusion of a car accident claim. Auto insurance carriers of Ontario continue to demonstrate that their number one focus is customer service and meeting consumer expectations.
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Driverless Cars are here! Some U.S. states have passed legislation recently to allow for automated-driverless-computer-based cars on auto-pilot on their roads. Coming to Ontario roads soon? Would it lead to safer roads and ultimately lower Ontario car insurance? Computer-controlled Driverless cars, initiated by Google, are exactly that – they do not require a human to operate a car to drive. By letting a car drive automatically, we can come closer to eliminating accidents and improve road safety. Car accident deaths are the number one cause of deaths for young people and almost all are due to human error and not machine error and therefor can be prevented. Fewer accidents, safer roads will lead to lower auto insurance in Ontario and all jurisdictions.
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Ontario car insurance rates are amongst the lowest for older drivers even though this demographic group has the second highest rate of occurrence of fatal car crashes, based on kilometres driven. This is only slightly behind young drivers, according to recent Ontario auto insurance statistics. This high death rate is due in large part to their overall bodily frailty as compared to other drivers, as older people are less likely to survive a serious car crash injury than younger people and or require extended rehabilitation. There is a growing need to help older car drivers sharpen their skills to mitigate these concerns. Should auto insurance regulations and Ontario car insurance companies create programs designed to address these needs?
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In a new study commissioned by the Insurance Bureau of Canada, the collective, credible three authors say the industry and provincial government need to contain costs by reducing high claims costs and fraud especially within the troublesome Toronto, GTA Ontario region. Ontario is among the most regulated provinces for private car and auto insurance and Ontario has had the most costly and least affordable auto insurance since 2008. Auto Insurance fraud accounts for approximately 18 percent of costs incurred by car insurance companies in Ontario, a trend that has been increasing since 2003. The new research into the Ontario car insurance industry concluded that the system is broken in the Greater Toronto Area, but in contrast, is just fine for the rest of Ontario.
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The ability to predict the probability of an outcome, known as predictive modelling, and the use of it in Ontario insurance, has begun to take it affect – in a positive way – especially in the way insurance (primarily car and auto insurance) policies are priced. The revolutionary system – usually a software algorithm - allows car insurance companies to design ever-more-sophisticated models that tap ever-more-detailed data sets to refine precisely how much each customer, or driver, should be charged for their Ontario car insurance policy. When will this be widespread to price auto insurance in Ontario?
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Statistics Canada reported a reduction of thousands of car insurance related accidents and this trend is most certainly in place in Ontario. Improved car and auto vehicle design and accident-avoidance equipment and possibly, although not evident, improved driver habits is cited as the reason for the reduction in Ontario car insurance claims. No matter how this has come to pass, far fewer car accidents insurance claims are a good thing, no question. So why hasn’t this led to lower or cheaper Ontario car insurance?
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Driving without car insurance in Ontario is illegal. Insurance protects you, and others, from financial ruin in the event of an auto accident. It can come to the rescue if your car is vandalized, damaged by fire or stolen — depending on your Ontario car insurance policy. This is the part of auto insurance that provides protection from claims arising from injuries or damage to other people, property and cars. Liability insurance coverage is likely the most important part of auto insurance in Ontario and throughout Canada.
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