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Paying More for Less Coverage


Paying More for Less Coverage

​We agree that Ontario auto insurance premiums are too high. There have also been some changes to coverage. Why is this?


Between 2004 and 2010, the cost of accident benefit payouts in Ontario rose about 180%. This is mainly because the costs of assessing – not treating – an injury rose 235%. During the same period, premiums rose (on average) only 5.6%.

Despite the huge increase in accident benefit injury claims, Ontario roads have become safer. There has been a 12% reduction in severe collisions that require victims to be hospitalized.

So where is all the claims money going? Sadly, there are many medical rehabilitation clinics, lawyers and paralegals, tow truck operators and body shops that make their money from Ontario’s generous auto insurance system. They believe that if the money is there, they should use it regardless of specific needs.

To stop insurance rates from increasing, the Government of Ontario changed the cap on minor injuries and introduced other reforms to ensure that the dispute resolution system for determining eligibility to accidents benefits is efficient and cost effective for all parties.

Read IBC Ontario Vice-President Ralph Palumbo’s op-ed, Why Auto Insurance Rates Are So High, for an in-depth explanation about auto insurance rates.