Contingency fees driving up insurance prices in Ontario

Drivers in the province pay as much as 70% more than motorists in neighbouring locales

Contingency fees driving up insurance prices in Ontario

Insurance News

By Allie Sanchez

“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.

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“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.

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“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.

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