Some observers are scornfully characterizing the process as a shell game: Ontario motorists are being told that they are being given more choice, but after September 1, 2010 many will pay more premium for potentially serious reductions in coverage.
The government’s automobile insurance regulator is reporting that 2010 Q2 automobile average rates decreased by 1.03% (rated by market share).
But that’s a little deceiving. Many insurers have already had 1 or 2 rate increases in the last year, resulting in most policyholders seeing an overall premium increase on their annual policy renewal.
And for the first time ever, Ontario policyholders will be receiving a renewal that provides significantly less healthcare-related coverage than that provided by their expiring policy.
All of this is being done to curb rapidly increasing claims costs for injured drivers, passengers, and pedestrians.
Not to be ignored are some improvements to the provincially regulated vehicle insurance system: greater transparency to policyholders of funds paid to their healthcare providers is a helpful change.
But some of the messaging by the provincial government – echoed by some voices within the insurance industry – is emphasizing the price reduction while minimizing the reduction in protection.
Let’s call a spade a spade – premium increases are less than they would have been, but more premium is purchasing less coverage.
Tags: Automobile, broker, claims, coverage, driving, insurance, ontario, premium, risk
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Kim
August 3, 2010 at 1:33 pm
consumers will have to educate themselves more.
HG
August 3, 2010 at 2:51 pm
consumer will have to be more pro active by reading the attachments that is provided with the renewal.
DP
August 3, 2010 at 5:52 pm
consumers don\\\’tknow what they have now and will not be interested unless thye have a claim.
We may be going through tis again in a few years.
SD
August 4, 2010 at 1:03 pm
those insureds expecting a large rate reduction will be looking for answers from their brokers.
James05
August 4, 2010 at 2:01 pm
More money for less coverage, yeah, that makes sense.
SL
August 4, 2010 at 2:02 pm
With this new Auto Reform …Consumers will have to keep a closer eye on their insurance coverage and be sure to change their Insurance to meet their personal circumstances.
Rates may be increasing …
“The premiums of the many, pay for the losses of the few”… it’s the way it is… we all subsidize everyone elses insurance costs to one degree or another.
gc
August 4, 2010 at 4:53 pm
Consumers need to READ their renewal policy to make sure the New Auto Coverage suits their needs should a claim occur.
GK
August 4, 2010 at 4:54 pm
Unfortunately it is always those who abuse the system that cause everyone’s rates to go up. Hopefully these changes will help get a handle on things.
MB
August 4, 2010 at 5:05 pm
This is a great opportunity to prove your broker’s worth. Take the time to call you broker to ask him or her about this new auto reform.
HC
August 4, 2010 at 5:06 pm
Hopefully in the end this reform will decrease premiums by decreasing claims costs while still giving adequate accident benefits coverage.
jp
August 4, 2010 at 5:17 pm
on a positive note, the new auto reform could reduce the number of fraudulent claims paid out by the insurance companies.
pl
August 4, 2010 at 5:46 pm
Give your insurance broker a Hug today.
cd
August 4, 2010 at 6:25 pm
The New Auto Reform will most certainly reduce fraud and misuse in the current system, however, the advice of your Broker is crutial in making the right choices in customizing coverages to suit each need.
LB
August 4, 2010 at 7:17 pm
We as brokers are going to have to educate our clients on what coverages they will have effective September 1st, 2010 vs. what they have now.
se
August 4, 2010 at 7:22 pm
The Broker will need to have indepth conversations with their clients to ensure the coverage is appropriate for their individual needs.
gd
August 4, 2010 at 8:05 pm
This is an area of the automobile coverage which needed to be addressed for some time. Costs for assessments and rehabilitation needed to be monitored to justify the expenses. The new Government reforms will address these issues with limits and coverages directed at those who truly need the care.gd
KM
August 5, 2010 at 8:45 am
caviat emptor