Brokers association lauds Ontario budget pledge of electronic proof of insurance option
We can shop for cars online. We can order chauffeurs to our doorsteps through wifi. We can navigate road trips with apps and GPS devices. Yet prior to last week, one thing we couldn't do—at least in Ontario—was confirm their auto insurance electronically. But thanks to a new provincial government pledge, that is set to change.
In Chapter II of the Ontario 2017-18 budget release, titled "Helping You and Your Family," the government addresses Consumer Protection and its intention to help consumers save money with auto insurance by allowing drivers to show electronic proof of insurance. The inclusion of this pledge was lauded by the Insurance Brokers Association of Ontario (IBAO). Here is the overview offered by the report regarding how this will take place:
"This will allow drivers to confirm their proof of insurance through their mobile device instead of the current paper "pink slips issued by insurance companies. When using this option, drivers will no longer need to replace a paper copy of their proof of insurance each time they renew their auto insurance policies. Distributing documents electronically, including proof of insurance and other documents such as policy renewals, will enhance customer convenience and result in savings for insurance companies. To ensure that these savings are passed along to the consumer, the government will require that insurers offer a discount to policyholders who choose to receive documents electronically."
Reducing auto insurance costs has been a long-term focus of the Ontario Liberal government. In recent years, it has implemented reforms to get insurers to offer discounts for the use of winter tires, create a faster dispute resolution system, prohibit premium increases for minor at-fault accidents, and lower the maximum interest rate charged on monthly premium payments.
Still, its changes have not been entirely effective. A recent study and report carried out by an industry analyst identified an enormous amount of unfairness and inefficiencies in the Ontario insurance system. One can only hope that the step forward being taken with electronic proof of payment won't be hindered by two steps back.