Ditching pink slips and putting motorists back in the driver’s seat are among the highlights of auto insurance changes in this year’s budget.
And new measures meant to increase competition in the province’s auto insurance marketplace are also in the works — paving the way for innovative business models that include pay-as-you-go policies.
Entitled “Putting Drivers First,” the Ontario government’s blueprint for auto insurance reform promises to fix what Finance Minister Vic Fedeli referred to as a “broken system.”
“It starts with giving drivers more options when deciding which auto insurance coverage suits their needs, and gives them more control over their rates,” he said during his Thursday afternoon budget speech.
“We will make it easier and faster for insurance companies to offer drivers new discounts and coverage options that were not previously available.”
The new measures are meant to reverse rising policy rates in the province.
According to numbers published last month by auto insurance aggregator Kantetix, insuring a car using a northwestern Brampton postal code costs upwards of $2,494 per year — the highest jurisdiction in Canada.
A bill introduced last year by Tory MPP Parm Gill will, once passed, bring an end to postal code-based auto insurance rates — a well-worn plank in the platforms of both the Liberals and NDP during the previous election.