Last month, the Financial Services Commission of Ontario (FSCO) announced that auto insurance rates in the province rose 0.76 per cent in the second quarter of 2017, the second straight quarter of increases. The announcement has been met with frustration from insureds and car accident lawyers.
A less than 1 per cent increase might not seem like much, but it goes against a long-standing promise from the provincial government to reduce rates. In May 2013, the ruling Ontario Liberal Party promised a 15 per cent auto insurance rate reduction by 2015. This aim was never achieved.
“It got to around 7 per cent and they realized that there were a lot of issues around this that the industry and the regulators have to work together on,” explained A.M. Best Company senior financial analyst Joel Silverthorn during a November 2016 presentation in Toronto.
Last year, the Liberals instituted major cuts to mandatory benefits for both catastrophic and non-catastrophic injury victims. Canadian Underwriter recently published an effective summary of those changes:
“Until June, 2016, there were two separate $1 million limits – one for medical and rehabilitation coverage and another for attendant care. Now the mandatory accident benefits coverage has a $1-million limit. For non-catastrophic injuries, the mandatory coverage until 2010 was $100,000 for medical and rehab benefits and $72,000 for attendant care. That was reduced in half in 2010. It was further reduced in 2016, with the mandatory coverage now being $65,000 for medical, rehab and attendant care.”
Despite these aggressive measures, which car accident lawyers believe will have devastating effects on injury victims, Ontarians continue to pay more for their car insurance than anywhere else in Canada. This April, the provincial government published a comprehensive review of the Ontario auto insurance system conducted by David Marshall, the former CEO of the Workplace Safety Insurance Board. According to the report, the average auto insurance premium in Ontario is $1,458, nearly 55 per cent higher than the average premium in all other jurisdictions.
The Marshall report also contained 35 recommendations to the insurance industry to reduce premiums and improve efficiency, including adopting a “care not cash” approach for insurers.
“Many insurance companies … are not incented to see their role as providing medical care to clients,” the report reads. “Rather, they are incented to close their liability with as little cash cost as possible and hence they introduce the practice of negotiating cash settlements with claimants in lieu of medical treatment, future wages and other future benefits under the [Statutory Accident Benefits Schedule].”
If you have been injured in an automotive accident, contact the experienced car accident lawyers at Neinstein Personal Injury Lawyers today to find out how we can help you navigate the complex legal and insurance systems while you focus on your recovery.
Photo credit: Jason Bain/Wikimedia Commons
