The Ontario budget is expected to introduce car insurance reform, providing car owners with more choices
CBC News learned that Ontario Governor Ford's government will include car insurance reform as a core component in the budget announced on Tuesday.
Multiple industry sources familiar with the government's plan say that the reform will provide Ontario drivers with a wider range of choices to lower their car insurance premiums.
This will be the second major attempt by the Ford government in reforming car insurance. The 2019 budget included a plan called 'Putting Drivers First', which the then Finance Minister Vic Fedeli stated would be transformative. However, according to the Auditor General of Ontario, the average car insurance premium increased by nearly 14% from 2017 to 2021.
The auditor reported in 2022 that the average car insurance premium paid by Ontario residents is the highest in the country. Subsequently, due to inflation, increased car theft, and supply chain issues caused by the pandemic, insurance premiums across Canada further increased. The forecast shows that premiums will further increase in 2024.
During the 2022 provincial election, Ford's Progressive Conservative Party pledged to "provide consumers with more choices when purchasing car insurance over time
Car theft is a factor affecting insurance rates, and earlier this year, the Canadian government announced further investments to combat car theft. The total federal funding announced in February this year was 15 million yuan, of which 9.1 million yuan was allocated to provincial, regional, and municipal police forces.
At the time, Celyeste Power, President and CEO of Insurance Canada, expressed appreciation for the federal government's investment of $15 million to support law enforcement efforts in combating car theft. Based on ongoing work, including previous investments in strengthening the Canada Border Services Agency and a commitment to modernizing Canadian motor vehicle safety standards, including stronger theft deterrence
Industry insiders say that Tuesday's budget proposal will be largely consistent with campaign promises. The budget will not include any specific targets for a comprehensive reduction in average car insurance premiums. On the contrary, these measures will increase the so-called "selectivity" in the industry, giving drivers more room to choose their insurance plans.
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https://www.insurancebusinessmag.com/ca/news/auto-motor/ontario-budget-to-feature-auto-insurance-reforms –report-482504.aspx