Ontario Gov't mandates a 15% decrease to *Auto* Insurance Rates | GTAMotorcycle.com

Ontario Gov't mandates a 15% decrease to *Auto* Insurance Rates

VifferFun

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infernobuster

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Insiders say that they will increase insurance rates, prior to the mandated goverment decrease .. which will effectively not reduce or elminate the 15% they want to reduce it by.
 

skip

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and my rates went up 16% last renewal for no reason, no tickets, no change of address, no change of work milage or vehicles...just another year older
 
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RockerGuy

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Lol
 

Julz

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Insiders say that they will increase insurance rates, prior to the mandated goverment decrease .. which will effectively not reduce or elminate the 15% they want to reduce it by.
Well then it all evens out at the end lol.
 

lucky2

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just another liberal ******** scandal to stay in power
 

VifferFun

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Insiders say that they will increase insurance rates, prior to the mandated goverment decrease .. which will effectively not reduce or elminate the 15% they want to reduce it by.
This potential increase has definitely been on our radars for a number of months now. In order for companies to have increased rates prior to this announcement, they would have had to justify it with the Financial Services Commission of Ontario (FSCO). My employer has actually taken double-digit overall rate reductions in the last year, since it was justified by our claims experience and the more profitable clients we can attract, the better.
 

VifferFun

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just another liberal ******** scandal to stay in power
Indeed it is -- this move is purely political. Mandated an across-the-board decrease is a little absurd, since the companies already operating on a tight profit margin will be forced to take rates that are inadequate to pay losses. It will be interesting to see how this plays out.
 

250R-ICE

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If you are lucky you see a decrease in your insurance rates. But I bet you will definately see a drop in your coverage benifts.
 

ZX600

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Indeed it is -- this move is purely political. Mandated an across-the-board decrease is a little absurd, since the companies already operating on a tight profit margin will be forced to take rates that are inadequate to pay losses. It will be interesting to see how this plays out.
Canadian Home's budgets are also very tight operating at a loss in many cases (debt), sorry but I do not feel bad for your employer and as to "forced" please lol
 

250R-ICE

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I've said this before and I'll say it again. Whenever an insurance company says they had a loss this year compared to last year and therefore need to increase their rates. What they are actually saying is that compared to last year they made less profit. They didn't actually lose any money. Think about it , do you actually belive they would stay in business if they were losing money year after year ? When was the last time you heard of any insurance co ( one of the larger ones) actualy lay off people or shut down ? Insurance is one of the largest legal scams we have here in Ontario. Why do you think insurance companies are dead set against goverment mandated insurance like they have in other provinces. They know they are making a killing off us, and will continue to do so.
 
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Mongrel

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The fact of the matter remains that we have the highest car insurance rates in the country, possibly even the continent and that's even with the recent reduction in minimum coverage. We are the extreme. Maybe this legislation is poorly thought out, but things are bad enough that extreme response were inevitable.

In the same way, maybe Verizon will be good for Canada's cellphone market, maybe it will actually turn out very badly, but very very few people in this country have any sympathy for the cell phone companies. Ontario's car insurers are in the same boat. No sympathy. That makes such companies big fat targets for politicians looking to score easy points. Once a company is hated enough, no amount of lobbying will save them. There is in fact good financial value in being a well-loved businesses, though many big companies have forgotten this or deemed it "impractical".

If companies allow things to become that bad, then I'm afraid I have no sympathy for them. If fraud is a big expense (and it is), then hire more investigators, offer competitive rates to clients using dash cameras, work more closely with each other than is down now, take any other measures that might knock the fraud rates down, or - god forbid - offer significant rate reductions on their own. Sure, those cost money and trouble, but the alternative is what we have now. And I bet if the insurers had offered an across-the-board 5 percent rate decrease it would have made it a hell of a lot harder for the government to demand 15 percent.
 
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DoubleJ

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Yes and you need to hold your breath for 2 years according to Wynne/Sousa Lieberal *****. You will never see a reduction, just up. But the dummies in TO will vote these *****'S in again next fall .
 

Mongrel

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My understanding is that's it going to come in stages. So there should be some reduction the first year.

Also, there's committee review of the implementation period, so I expect the dippers (who demanded the rate change as part of the package for supporting the gov) to raise a stink there and possibly get the timetable accelerated. No guarantees of course, so we'll see.
 

Rossi86

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They've been "lowering" insurance rates for years now it's nothing new. The insurance cost goes up and your coverage (i.e value for money) goes down. Auto insurance here is one major scam. Basically the government has given the insurance companies a license to steal and they charge whatever the **** they want. It's amazing how the government has laws that makes auto insurance mandatory, but doesn't regulate how they operate to protect the public. It's like being forced into a cage with a pack of wolves...
 

-D-

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Insiders say that they will increase insurance rates, prior to the mandated goverment decrease .. which will effectively not reduce or elminate the 15% they want to reduce it by.

This is accurate. My old agent that has been in the business for 25+ years told me this as well a few years ago when they did the same thing. My agent said they already got permission to increase rates or they increased rates 20% over 3 years then when you hear 15% cut, you feel better. lol
 

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