The Ontario government has implemented a plan to lower automotive insurance rates across the board by approximately 15%. The plan is staged over two years, and Ontario drivers can expect, on average, an 8% drop by August 2014, and a further 7% drop by August 2015.
Plan Outline
The government plan includes a series of phases that will be fulfilled in order to address current problems and effect change across the province of Ontario. Some of these phases will have a tangible effect sooner than others, and it is possible for some Ontario drivers to experience reduced rates faster than outlined above. A point of emphasis for the plan is fraud, which has been a significant problem in Ontario. Good drivers who will now get the discounts they deserve should be the first to feel the change.
The other planned steps intended to reduce the auto insurance rates in Ontario include:
Plan Timeline
Many drivers will see reductions to their rates prior to August 2014. In fact, Ontario’s Financial Services Commission has approved a measure that will lower rates throughout the province by 3-5% by January 2014. Therefore, rate reductions will occur even before some of the changes that fuel them take effect. Further reductions will play out naturally, but most experts consider the 8% and 15% marks to be rather conservative. It is true that the effect from many of the changes could take a significant amount of time to trickle down to the consumers; nevertheless, it isn’t unlikely that the 15% goal is achieved well ahead of the August 2015 marker.
Plan Mission
Lowering rates is an important component of the Ontario plan, but it isn’t the extent of it. The plan also includes measures for assessing and improving automotive insurance. The goal is to provide better products and services to consumers without making the Ontario industry less viable for the companies that provide them. In order to achieve this, Ontario will rely on both internal and external sources to assess, streamline, and improve current insurance systems.
There is a strong belief that the necessary improvements are achievable simply through the resources that will be recovered through the elimination of waste and fraud. The first area of focus will be the dispute resolution mechanisms, which are currently a great source of inefficiency.
Ontario Residents Can Save Now
Ontario drivers don’t have to sit idly by and wait for the rate reductions to come to them. Proactive residents may be able to take advantage of many of the benefits right now. Many insurance providers are seeking to entice new clients by offering these discounts in advance. Therefore, when it comes time to renew an auto insurance policy, Ontarians should comparison shop rather than settle for their current policy. Many resources online allow consumers to:
The Real Impact on Ontario Drivers
Lowering Ontario car insurance rates by 15% will have an impact on all drivers throughout the province. How fast and to what degree remains to be seen, but the early indicators are very favourable. The committee in charge of the plan has worked diligently to ensure that Ontario’s best drivers are the first to feel the positive impact.
Nevertheless, it is important to temper expectations and be patient. Sudden rate drops are unlikely, and if a driver is mid-term on a current policy, then they may have to wait awhile. Speaking with one’s insurance agent proactively is a good idea, however, and the better insurance companies will be aggressive about taking care of their loyal clients. They know they’ll face stiff competition in the months ahead.
Note that the plan execution is still in its infancy. Additional information about what Ontarians can expect will emerge gradually as the plan is put into action.
Plan Outline
The government plan includes a series of phases that will be fulfilled in order to address current problems and effect change across the province of Ontario. Some of these phases will have a tangible effect sooner than others, and it is possible for some Ontario drivers to experience reduced rates faster than outlined above. A point of emphasis for the plan is fraud, which has been a significant problem in Ontario. Good drivers who will now get the discounts they deserve should be the first to feel the change.
The other planned steps intended to reduce the auto insurance rates in Ontario include:
- Regulations to ensure rate reductions apply evenly to the entire province;
- Licensing for individuals and organizations that process accident injury reports;
- Enforced refilling of rates by all insurance companies serving Ontario;
- Sustained and expanded program to provide discounts to safe drivers;
- Better enforcement of the Superintendent’s Guidelines for accident benefits;
- Government-sponsored monitoring of repair shops, towing companies, and similar entities.
Plan Timeline
Many drivers will see reductions to their rates prior to August 2014. In fact, Ontario’s Financial Services Commission has approved a measure that will lower rates throughout the province by 3-5% by January 2014. Therefore, rate reductions will occur even before some of the changes that fuel them take effect. Further reductions will play out naturally, but most experts consider the 8% and 15% marks to be rather conservative. It is true that the effect from many of the changes could take a significant amount of time to trickle down to the consumers; nevertheless, it isn’t unlikely that the 15% goal is achieved well ahead of the August 2015 marker.
Plan Mission
Lowering rates is an important component of the Ontario plan, but it isn’t the extent of it. The plan also includes measures for assessing and improving automotive insurance. The goal is to provide better products and services to consumers without making the Ontario industry less viable for the companies that provide them. In order to achieve this, Ontario will rely on both internal and external sources to assess, streamline, and improve current insurance systems.
There is a strong belief that the necessary improvements are achievable simply through the resources that will be recovered through the elimination of waste and fraud. The first area of focus will be the dispute resolution mechanisms, which are currently a great source of inefficiency.
Ontario Residents Can Save Now
Ontario drivers don’t have to sit idly by and wait for the rate reductions to come to them. Proactive residents may be able to take advantage of many of the benefits right now. Many insurance providers are seeking to entice new clients by offering these discounts in advance. Therefore, when it comes time to renew an auto insurance policy, Ontarians should comparison shop rather than settle for their current policy. Many resources online allow consumers to:
- Enter their information just once;
- Compare multiple quotes quickly;
- Identify the largest discounts available.
The Real Impact on Ontario Drivers
Lowering Ontario car insurance rates by 15% will have an impact on all drivers throughout the province. How fast and to what degree remains to be seen, but the early indicators are very favourable. The committee in charge of the plan has worked diligently to ensure that Ontario’s best drivers are the first to feel the positive impact.
Nevertheless, it is important to temper expectations and be patient. Sudden rate drops are unlikely, and if a driver is mid-term on a current policy, then they may have to wait awhile. Speaking with one’s insurance agent proactively is a good idea, however, and the better insurance companies will be aggressive about taking care of their loyal clients. They know they’ll face stiff competition in the months ahead.
Note that the plan execution is still in its infancy. Additional information about what Ontarians can expect will emerge gradually as the plan is put into action.