Auto insurance rates studied

Auto insurance rates studied

2005 study on auto insurance shows Ontario's rates are 45% higher than in British Columbia

New study on auto insurance shows Ontario's rates are 45% higher than in British Columbia

The Consumers' Association of Canada released the Ontario results of a national study on auto insurance rates on July 19, 2005. The study also provides a detailed comparison of rates between Ontario, Alberta and British Columbia.

The study used 3,776,997 rate quotes across 300 diverse rating groups representing the key variables that affect auto insurance rates such as age, gender, location, claims, vehicle and driving record.

“This is the largest independent study ever to have been conducted on auto insurance rates in Canada”, said Bruce Cran, president of the Ottawa-based Consumers' Association. “The study found that consumers in Ontario pay 45% more for their auto insurance than B.C. consumers”, said Cran. The average auto insurance rate in Ontario was $2,383 while it was $1,324 in B.C.

“Consumers in Ontario have been clearly harmed by outrageous price increases for auto insurance over the past three years”, said Cran. “Victims of crashes have also been impacted [sic] by the Ontario Government's actions of imposing a $30,000 deductible on benefits paid to them. Innocent victims of crashes have suffered at the hands of the insurance industry while this industry continues to put billions of dollars of profits in its pockets,” he said.

The high rates are not confined to Toronto. “Across Ontario's cities such as Thunder Bay, Sault St. Marie, Sudbury, Windsor, Guelph, London, Kingston and Ottawa, consumers are paying extraordinarily high rates,” Cran added

Due to investigations by regulators of the insurance industry, a pattern has emerged among so-called independent brokers that is clearly not in the consumer's interest. With almost a hundred auto insurance companies operating in Ontario, a typical broker may only sell policies from one or two insurance companies. “Many of these brokerage firms have financial ties to insurance companies which limits real consumer choice," said Cran.

“An overwhelming, compelling message has emerged from the study for consumers in Ontario. Shop widely among many brokers and use the Internet to find the lowest auto insurance quote.”

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