Ontario Party Platforms’ Attempt to Reduce Insurance Rate

In this article, “What the Ontario Party Platforms Say about Auto Insurance” by “Willie Handler” discusses their views or stand on the outrageous rate of Auto Insurance, and how they plan to reduce the rate of insurance in the upcoming future.


The Liberals created “The Automobile Insurance Rate Act 2014” that proposes barriers to rate reduction, and this would be introduced if they form the next government. It consists of:

    1. Legislative amendments for the transformation of the dispute resolution system, and actions to crack down fraud and abuse and as well as cost –saving measures.
    2. Government is developing dedicated investigation and prosecution office on serious fraud prevention

The liberals also introduced legislation to regulate the towing industry but that Bill had not been passed before the election was called. They also tried to address storage-fee issues by introducing legislative amendments as part of Bill 171 that regulates-authority for the determination of vehicle storage periods and fair value regarding the daily fee. The liberals had retained an independent third party to provide annual Automobile Insurance Transparency and Accountability Expert Reports to assess its efforts to reduce insurance cost and rate. The reports are to be:

    1. Delivered in April 2014, and annual reports will be delivered in August of each year of the strategy. It should also asses the industry’s efforts to lower costs and savings for the drivers.
    2. Interim report should highlight that further action is needed to support the government’s Cost and Rate Reduction Strategy.
    3. It also should conclude, its importance that insurance continue working to achieve efficiencies and reduce costs in the auto insurance system through better claim management, sophisticated pricing methods, and improved fraud-prevention practices.

The liberals encourage the insurance companies to offer consumers usage-based insurances, which uses technology to identify and offer discounts for safe driving habits.

New Democratic Party

Just like the Liberals, they are trying to guarantee that the insurance rate will be decreased and that the Liberals are very slow in decreasing the insurance rate for most consumers. Although, it would be a big win for the consumers, it is a big change from the Status Quo. Rate reductions would be also effective on renewal which is also the status quo.

The NDP are committed to make transparent rate-setting permanent and provide consumers with a voice in that process. On transparency, the reference would be announced as 15%. The NDP may set annual average rate change targets that the regulator would have to meet. Consumers could express views on proposed rate changes, or they might have another mechanism in mind to bring consumers into the process.

Progressive Conservatives

Progressive conservatives also have the same point of view as the Liberals and NDP.  They think that the insurance premiums are too high. The PC plan proposes to:

      • Eliminate red tape,
      • Fight insurance fraud,
      • Make the dispute resolution system more effective
      • Ensure auto insurers are accountable to customers

The party references to allow customers to use of private mediators in the dispute resolution system, rather than government official, to reduce costs and expedite the process, even if the dispute resolution system needs more reform than what is in the PC plan.  Along the line of the DAC system, this system would establish an independent peer-reviewed medical assessment system by standardizing assessment procedures and requiring multiple assessments is performed by medical professionals of the same specialization. The PCs claim that prices in the marketplace would be more competitive if red tape were to be eliminated, and they would also to see more discounts available to consumers.

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