As drivers brace for big increases in their auto insurance the provincial government plans to announce a slew of changes meant to lessen the blow of the anticipated hikes.
Ontario Finance Minister Dwight Duncan will reportedly announce a proposed overhaul of the auto insurance sector with some 40 regulation changes now that a five-year review of the industry is complete.
Under the Liberals’ plan, drivers will have more flexibility to shop around for better rates, while staying protected. Consumers will reportedly have the option to purchase a package with a basic medical coverage limit below the current $100,000 minimum.
Earlier this month it was revealed some drivers could face huge rate hikes, some into the double digits.
Many insurers have increased their premiums and for some companies, it’s the second or third hike in about a year.
Premier Dalton McGuinty argued the costs today are still cheaper than they were six years ago. He said when compared to the cost of living, Ontario is still a “pretty good place to be in as a driver.”
According to the Insurance Bureau of Canada, the average Ontario driver shells about $1,300 per year.
Proposed New Options for Drivers Buying Auto Insurance