The Government Platforms on Auto Insurance

With the amount of fraudulent auto insurance claims that occur there is a struggle to balance auto insurance rates for the public. Aware of this growing issue it has become a target of which the public is demanding the government parties to pay attention to. Now that the government parties have released their policy platforms in hopes of persuading the public in their direction, it becomes more and more clear just how much of an issue the growing rate of auto insurance has become.

The liberal party, who were in power when the policy platforms were released, suggest that there is progress being made on automobile insurance rates. After introducing Bill 171, the liberals fought to get it passed but did not succeed. The Bill put forth many amendments to better the auto insurance rates for the public such as, transforming the dispute resolution system, cracking down on fraudulent and abusive behaviour, all the while keeping in mind the need to save money. In March 2014, the average rates are down 5.6%. The Liberals claim that the reduction strategies that they proposed would work, with the rates expected to be 8% lower by August 2014 and 15% lower in another year.

The New Democratic party, frustrated by the slow progress of the liberals actions have proposed that if elected the rates of automobile insurance would drop 15% by June 2015. Although ambitious there is a lack of proposed solutions to make this happen. There is however a push to include the consumers demands by imposing the need to have transparent rate setting permanent.

The Progressive Conservatives also agree that the auto insurance rates are far too high for the public. They, like the Liberals, believe that there is a requirement to amend the manner in which these types of disputes are handled. They however suggest using private mediators rather than having a government mediation in order to reduce costs. They hope to reform four areas:
• Eliminate red tape
• Fight insurance fraud
• Make the dispute resolution system more effective
• Ensure that auto insurers are accountable for costumers

The financial budget for 2014

Amber McVittie-Quinn is a Paralegal student at Centennial College in Toronto studying professional communications with Omar Ha-Redeye.

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