# Ontario budget to set target of 15 per cent drop in auto insurance premiums



## gibor365 (Apr 1, 2011)

found today on 680 news : 
http://www.680news.com/2013/04/30/o...-15-per-cent-drop-in-auto-insurance-premiums/
"_TORONTO – If you pay $1,000 for auto insurance, that bill could drop by $150 after Thursday.
Finance Minister Charles Sousa says Ontario drivers will see some relief in Thursday’s budget.
Sousa said the plan is to save drivers 15 per cent on average when it comes to their insurance premiums.
“Our plan would reduce household premiums for insuring a vehicle by $225 a year on average. That would decrease _."

Is it something real or just usual pre-election propoganda?! My insurance payments are already set by insurance company (The Personal) 12 months ahead.... Hard;y beleive that I gonna get another quote with reduced payments...


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## blin10 (Jun 27, 2011)

"If you pay $1,000 for auto insurance, that bill could drop by $150 after Thursday." most policies are set a year ahead


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## Dmoney (Apr 28, 2011)

And in completely unrelated news, insurance companies announce that they are now paying 15% less on all claims.

Does anyone actually believe that their 15% savings are going to come from the bottom line of insurance companies?
So your $1,000 insurance premium is now $850. Unfortunately it doesn't cover a number of things that it used to. But, lo and behold, they now offer a $1,000 "platinum" package. The Platinum package gets you right back to where you started.


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## LondonHomes (Dec 29, 2010)

Only way this is going to work is if the Ontario government is going to be paying 15% of your bill.

Other than that it's a ploy for the financially illiterate, which there must be a lot of.


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## Cal (Jun 17, 2009)

LondonHomes said:


> Only way this is going to work is if the Ontario government is going to be paying 15% of your bill.
> 
> Other than that it's a ploy for the financially illiterate, which there must be a lot of.


Exactly...still means we are paying for it, just not directly.


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## andrewf (Mar 1, 2010)

I don't know, but what I do know is that auto insurance in Ontario is severely broken and needs to be fixed. I don't think this is anything more than a band-aid solution.


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## HaroldCrump (Jun 10, 2009)

This is nothing more than political posturing to secure continued support from the NDP (esp. after the Liberals lost even more seats in the recent by-election).
Most insurers are now looking to *raise*, not lower, insurance premiums after the recent increase in claims due to flooding.
Both home insurance as well as auto insurance.

From the news:
_He isn’t offering a timeframe and admits that drivers won’t see savings overnight.
"That may take time," he admitted._

Yeah, yeah, yeah, yap yap yap.

I do not believe a word of this.


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## Retired Peasant (Apr 22, 2013)

HaroldCrump said:


> Most insurers are now looking to *raise*, not lower, insurance premiums after the recent increase in claims due to flooding.
> Both home insurance as well as auto insurance.


This is something that doesn't quite add up for me. After the flood, they said 'flooding wasn't covered' by home insurance (in fact, one can't get such insurance anywhere in Canada). But now our house insurance premiums are going up 'because of the flood'?


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## HaroldCrump (Jun 10, 2009)

It seems part of the flood damage is being covered by some insurers like TD Meloche Monnex under the Sewer Backup rider, subject to some limits of course.

http://www.thestar.com/business/per...ses_rates_in_wake_of_water_damage_claims.html

http://globalnews.ca/news/704617/toronto-flood-may-rival-05-downpour-in-insurance-claims/

Then there is comprehensive auto insurance which does cover flooding.


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## OhGreatGuru (May 24, 2009)

While they're at it, why don't they cut the cost of energy, housing, and groceries too?

Voodoo economics. The last time they took action to reduce the cost of car insurance it was done by reducing the legally required amount of the liability insurance coverage. It's like the incredible shrinking ice cream container - manufacturers keep making them smaller to keep the price down.

If government really wants to reduce the cost of insurance they need to:
a) enforce the traffic laws more strictly to reduce accidents;
b) enforce the drinking laws more strictly to reduce impaired driving; and
c) crack down on car theives and/or come up with mandatory fool-proof security systems for cars.

You could get a temporary reduction by going to public insurance. But in time the public insurance corporation would face the same rising claim rates.


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