Are You Paying Too Much for Auto Insurance?
According to an article published in The Toronto Star, drivers in Ontario were overcharged to the tune of $3 billion for auto insurance over the past decade. That worked out to an average of $100 to $120 per family in 2013, a study for the Ontario Trial Lawyers Association shows.
This comes after a highly profitable decade for insurance firms despite having reduced accident benefits, states a personal injury lawyers’ group.
According to the article: “Individual companies have earned far more than the 11 per cent return on equity allowed by the Ontario government, the analysis by two York University professors found.” The two professors, Fred Lazar and Eli Prisman, claim that Ontario drivers paid about $840 million too much in 2013 alone.
However, the insurance industry rejects the study’s claims, pointing out that the auto insurance industry as a whole reports very thin profit margins: -1.1% in 2001 through 2011, 4.2% in 2012 and 2.4% in 2013.
“Families in the province are paying more and getting less,” Steve Rastin, president of the Ontario Trial Lawyers Association, said at a press conference last week. Meanwhile, claims costs continue to rise while the government regulates premiums, said Insurance Bureau of Canada Vice President Ralph Palumbo.
It’s been almost two years since the NDP, applying pressure in return for support of the then-minority Liberal government’s budget, forced Premier Kathleen Wynne to promise to bring down rates by 15 per cent.
According to lowestrates.ca, Ontario has the highest auto insurance premiums in Canada.
While the insurance industry can be very complicated, it’s important to understand what your auto insurance covers. If you or a loved on has been injured or hurt in a car or motor vehicle accident call Diamond & Diamond Personal Injury Lawyers, Ontario Wide, at 1-800-567-HURT (4878) for professional guidance on how to proceed.