According to a new report, Ontario drivers are overpaying for car insurance, between $7.6 and $12.7 billion from 2001 to 2018. This represents about 7.8 percent of the total premiums paid for car insurance in the province during this period.
The top ten insurers in Ontario have earned higher profits than all of their other businesses combined across Canada for the past three years.
The report was written by York University economist Fred Lazar for the Ontario Trial Lawyers Association (OTLA). Lazar says that the reason Ontarians are paying too much for car insurance is due to a lax government oversight.
Ontario car insurance companies recently obtained approval from the government to raise premiums yet again. Rates in the province are 20 percent higher than in 2017.
Drivers are paying more for insurance year over year but getting less coverage, especially in the event of a car accident. These higher premiums have only helped to subsidize the entire insurance industry throughout Canada.
Greater transparency and a clear reporting of profits being made by the car insurance industry is being called for.
To help restore balance to Ontario’s insurance system, OTLA is proposing a comprehensive reform package to the government to ensure affordability and fair treatment for all drivers.
Need Legal Help? Learn More About Car Insurance Compensation
Car insurance companies will do anything to protect their bottom line. If you have been injured in an accident and are unsure about what your policy covers, speak to a Windsor car accident lawyer today. We offer free consultations and there are no upfront fees unless and until we help you obtain compensation.
Call Greg Monforton & Partners today at (866) 320-4770.