“Ontario drivers pay too much for auto insurance,” Aviva Canada executive vice president of claims Irene Bianchi said in a company statement.
Citing a study by Osgoode Hall law professor Allan Hutchinson, the firm noted that there is a need for “complete disclosure and transparency on legal issues” that are contributing to the rise in insurance costs in the state.
Learn more about auto insurance here.
“Contingency fees are one of the key drivers of claims costs, and, as a result, increase insurance premiums that all Ontario drivers have to pay,” Bianchi went on to say.
Ontario drivers pay 24% more than their counterparts in Alberta and 72% more compared to motorists in Atlantic Canada, data from the Insurance Bureau of Canada revealed.
Want the latest insurance industry news first? Sign up for our completely free newsletter service now.
“The cost difference between the provinces isn’t more accidents or a higher population density. Instead, it can be directly attributable to the large amount of costs taken from the system that do not contribute to helping accident victims,” Bianchi further observed.
The statement also noted “recent revelations on referral fees and advertising costs in the personal injury legal community.” Ontario drivers are shelling out for these expenses as part of the premiums they pay for their car insurance, the executive also said.
Cadillac to introduce auto subscription service that could impact insurance industry
ICBC backs away from exotic cars – US insurers step in