Auto insurance

Ontario NDP promises to cut car insurance rates by 40% if elected

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A New Democrat government in Ontario would cut auto insurance rates by 40 per cent and end “zip code discrimination,” said Chief Andrea Horwath.

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The party also promises to set up an Ontario Automobile Insurance Fair Rating Commission that would be charged with exploring a comprehensive no-fault public insurance system, a hybrid public-private model, or a no-fault private system.

“Our auto insurance system in this province is broken,” Horwath said Wednesday during an announcement in Brampton. “Together we can fix this and put $660 a year back in people’s pockets and in places like Brampton that figure is around $2,000, and we can do that by prohibiting car insurance increases for the next 18 months, by prohibiting discrimination by zip code. , and by establishing a commission that can provide us with a pathway to reduce car insurance rates with a public system or a combination of public and private system, from 40 %.”

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Liberal Leader Steven Del Duca said Ontario’s auto insurance system is complicated, making it difficult for motorists to understand how rates are set.

“We will continue to look for ways to make auto insurance accessible, affordable and fair for people no matter where they live in this province,” Del Duca said. “But I think overall it’s the whole affordability crisis that hard-working families in Ontario are facing and the Ontario Liberal Plan, A Place to Grow Up, has a set of very clear ideas that we will urgently implement in order to tackle the accessibility crisis.

Progressive Conservative spokeswoman Ivana Yelich said in a statement that Doug Ford’s PCs have helped drivers by providing more choice, fairness and cracking down on car insurance fraud, as well as ‘by building roads and highways and eliminating sticker renewal fees and tolls. on highways 412 and 418.

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“Andrea Horwath and the NDP supported the Del Duca-Wynne Liberals when they promised to cut auto insurance rates by 15%,” Yelich said. “This broken promise was later championed as a ‘stretch goal’.”

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Horwath said broad reform is needed in the auto insurance industry, noting Ontarians paid more in 2020 despite lower claims and $3.63 billion in profits for insurance companies.

The former Ontario Liberal government did not achieve the promised 15% rate cut “because the insurance industry was out to get it. That’s why they couldn’t reach 15 because they had no intention of reaching 15. We remember Kathleen Wynne not telling the truth. She called it herself as a stretch goal.

Asked how the NDP would get a 40% reduction in rates, Horwath said she would do so immediately after being elected to govern free insurance rates and outlaw discrimination by zip code where people are charged higher rates because of where they live.

The Commission would have 18 months to recommend a model for the industry that would achieve the promised savings on premiums, she said.

“And in two years we’ll cut people’s car insurance rates and get that 40% cut,” Horwath said.

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