DAILY NEWS Jul 15, 2010 4:01 PM - 2 comments

Ontario government approves reform-influenced auto insurance rate decrease of 1.03%

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Reform-influenced auto insurance rates filed with Ontario's regulator in 2010 Q2 show an average rate decrease of 1.03%, when weighted by market share.
The 2010 Q2 rates take into account the province's auto insurance reforms and will become effective when the reforms are implemented on Sept. 1, 2010.
The rate changes approved in 2004, 2005, 2006, 2007, 2008 and 2009 were -10.60%, -2.43%, -1.27%, +0.55%, +5.59% and +8.77%, respectively, for the entire market.
Scottish & York Insurance Company Limited received the largest rate decrease of 8.07%, followed by Echelon General Insurance Company with a rate decrease of 7.24%. None of the companies were approved for an increase, and 24 companies held their rates flat.
The Top 10 companies, based on 2009 market share, reported the following rate changes:
• State Farm Mutual Automobile Insurance Company: Flat (0%)
• Intact Insurance Company: Flat (0%)
• Security National Insurance Company: Decrease (-6.47%)
• Dominion of Canada General Insurance Company: Flat (0%)
• Economical Mutual Insurance Company: Decrease (-0.42%)
• Co-operators General Insurance Company: Flat (-0.04%)
• Wawanesa Mutual Insurance Company: Flat (0%)
• Unifund Asurance Company: Flat (0%)
• Personal Insurance Company: Flat (0%)
• Traders General Insurance Company: Flat (0%)
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Reader Comments

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Steve

I have to agree completely, you nailed it. The simple reality is that most people will end up with less auto coverage, but will not discover it until they need to make a claim. Ninety percent of people do not read or understand their coverage or its current limitations, never mind when they are allowed to selectively reduce coverage to save money. This is another stellar decision by the government.

Posted July 16, 2010 11:02 AM

Ami Maishlish

This article is a classic example of statistical meandering of logic. It is akin to an assertion that if your left foot is immersed in boiling water while your left foot is encased in a block of ice, on average you feel just fine. The mirage of the rate decrease is just that - a mirage. The coverage is reduced substantially while the overall cost remains flat or is reduced slightly. With the so called "reform", it's like getting a half a dozen eggs for the same price or slightly reduced from the price for a full dozen. These reforms are indeed reforms as they re-shape automobile insurance into profit assurance for the insurers at consumer expense.

Posted July 16, 2010 08:44 AM
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