Not only did Ontario’s Liberal government fail to deliver on its pledge to cut auto insurance premiums by 15%, but the Financial Services Commission of Ontario actually found that the rates for 26 companies increased by .06% in the second quarter, reports the
Toronto Star.
This does not bode well for the industry, since the deadline for Finance Minister Charles Sousa’s promised reduction is next month, and to date, Ontario drivers have only seen a 6.56% decrease in their auto premiums.
The
Insurance Bureau of Canada has gone on record to decry Sousa for misleading Ontario policyholders, with Ralph Palumbo accusing the party of sticking with a figure it “pulled out of thin air” and maintaining that Ontario’s auto insurance rates remain “far too high.”
According to the Bureau, Ontario drivers pay 45% higher premiums than those in Alberta, and average premiums are twice as high as the Maritime Provinces.
Still, Sousa stands by his campaign promise, which he had originally justified by proposing such reforms as anti-fraud initiatives, the crackdown of corruption in the towing industry and granting the financial services superintendent the authority to mandate that insurers refile their rates.
“Our plan to tackle auto insurance fraud and reduce costs is working. But we want to go even further,” he said in a statement.
He did not provide any explanation to missing the target date.
“Today’s second quarter rates are a snapshot in time,” Sousa continued. “Our reforms have sent rates lower on average over the last two years and there’s more to do to reduce rates by 15 per cent on average.”
The province’s 9.4 million drivers were supposed to see a discount of $225 per year. In 2014, Sousa accused his political opposition of delaying legislation that would cut costs for insurers, but maintained “We’re still going to be on track for the 15%.”
