Ontario Auto Insurance Legislation Passes; Will Reduce Costs and Fight Fraud
The provincial government has followed through with its promise to help make auto insurance more affordable and to fight insurance fraud.
With the passing of the Fighting Fraud and Reducing Automobile Insurance Rates Act, 2014, Ontario is showing it is dedicated to protecting drivers and reducing auto insurance rates.
“These important changes are the next step in our Cost and Rate Reduction Strategy. We’re building on earlier efforts to fight fraud and abuse, reduce costs and uncertainty and improve consumer protection. We’re working hard to help Ontario drivers save money on their auto insurance rates,” says Charles Sousa, Minister of Finance, in Auto Insurance Legislation Passes; Will Help Reduce Costs and Fight Fraud.
What’s changing?
The new laws will help consumers in three key ways:
- To provide the province with the authority to change the current 60-day period a vehicle can be stored by vehicle storage facilities after an accident.
- Changing the car insurance dispute resolution system to better assist injured drivers, settling claims faster.
- Providing consumers with better protection against the towing industry to reduce instances of fraud, reducing the number of scams that occur annually.
These three broad changes will help lower insurance costs for insurers and consumers alike. Reducing the instances of insurance fraud saves everyone money.
David Orazietti, Minister of Government and Consumer Services, believes the new law will benefit consumers in the province. He states,
“Passage of this new law is a big win for consumers. This act will deliver real results for Ontario drivers involved in traffic collisions or in need of roadside assistance. Consumers should be confident that tow truck operators are reputable, properly trained and will treat them fairly. We want consumers to be protected, and we want to make our roads safer.”
Auto insurance savings on the way as scheduled
The planned 15% cost saving on auto insurance is still scheduled to take effect by August 2015. To date, it’s estimated that rates have fallen by about 6% since the bill was first introduced in August 2013.
"We want to make sure people with clean records get the benefit of the cost reductions that are going to be imposed now by this piece of legislation," said Charles Sousa. "And they should be seeing, on average, a rate reduction of 15 per cent because that's what we're trying to fight for," Sousa further stated in Auto insurance bill passes in Ontario Legislature.
Sousa also announced that 21 of 120 car insurance companies in the province have already lowered their rates by an average of approximately 10% since the legislation was announced.
Finally, the province is also planning to explore the idea of making winter tires mandatory in Ontario, as a measure to reduce insurance claims and accidents during the winter.
Learn more about the newly-passed auto insurance legislation in Ontario:
http://www.cbc.ca/news/canada/toronto/auto-insurance-bill-passes-in-ontario-legislature-1.2841928
Also read: How Ontario Is Cracking Down on the Tow Truck Industry