By: Luke Jones, Published on April 17, 2018 05:46 PM, Last Update on April 17, 2018 02:48 PM
Auto insurance customers in Ontario paid more on average for the coverage during the first quarter of 2018 as premium rates increased. The result shows that the Liberal government’s goal of reducing auto premiums by 15 per cent is once again failing.
Statistics released by the Financial Services Commission of Ontario show that the premiums increase stood at just over two per cent compared to the final quarter of 2017. The Liberal government headed by Premier Kathleen Wynne promised in 2013 to reduce auto insurance premiums by 15 per cent before August 2015.
That date passed with slight improvement, but nowhere near the pledge made by the government. A further three years on and signs of 15 per cent ever being attainable are hard to come by. Accusations that the initial pledge was merely a vote grab appear more damning with each passing year.
The FSCO says the latest data means there has still been a rate decrease of 3.3 per cent on average since August 2013. However, the market is moving backwards from the near 9% decrease observed in 2016.
Once again the broken auto insurance market in Ontario is under the spotlight. A report last year highlighted several problems facing the province, while problems with fraud remain rife and a major problem for authorities.