Proposed amendments to Insurance Act could raise Ontario auto insurance premiums as much as 40%: Liberal MPP
Ontario Liberal MPP David Orazietti says Ontario drivers could see their auto insurance premiums go up as much as 40 percent if changes proposed by the NDP are approved.
Bill 45, the Insurance Amendment Act (Risk Classification Systems for Automobile Insurance), 2012 was introduced by NDP MPP Jagmeet Singh and would amend the Insurance Act to require that elements of a proposed risk classification system use the following mandatory factors in decreasing order of importance:
1. The driving safety record of the insured person, but only in respect of accidents where the person was found to be principally at fault.
2. The number of kilometres driven annually by the insured person.
3. The insured person’s years of driving experience.
4. The population of the statistical area in which the driver primarily resides.
Orazietti, MPP for the northern city of Sault Ste. Marie said “the NDP’s short-sighted auto insurance bill provides zero benefit to drivers in northern Ontario and in fact hits northerners with much higher premiums in order to subsidize the rates paid by drivers in the Greater Toronto Area and southern Ontario,” said Orazietti.
On his website, Orazietti released the following chart, stating what he believes the impact of Bill 45 would have on Ontario drivers:
|Brantford, Guelph, Kitchener-Waterloo||8.86%|
|Lake Erie District||13.00%|
|Grey-Bruce, Lake Simcoe, Parry Sound||14.51%|
|Stratford, Woodstock, Lake Huron||15.66%|
|Sudbury and Northeast Ontario||30.00%|
|Peterborough, Lindsay, Port Hope||35.81%|
|Lanark, Upper Ottawa, Southeast Ontario||40.00%|
“Insurance rates are set based on a variety of risk factors including region and mandating that drivers in Sault Ste. Marie pay on average $380 more per year on auto insurance premiums to cover the costs of drivers living in higher risk areas is completely unacceptable,” Orazietti wrote.