Drivers save on insurance rates

Canada’s home, car and business insurers announced today that consumers have enjoyed nearly $7 billion of auto insurance premium savings since insurance reforms were implemented in 2003 and 2004 in Ontario, Alberta, and Atlantic Canada. Today’s analysis is based on the latest data available from the General Insurance Statistical Agency (GISA), a government body that collects data on premiums recorded for every private passenger vehicle in those regions of the country.
After nearly four years of declining auto insurance premiums (2003-2007) in provinces with private auto insurance delivery, Insurance Bureau of Canada believes it is important to provide both a summary and a regional breakdown of the premium savings that have been delivered to consumers.
“Reaching nearly the $7 billion mark is an unprecedented level of savings for consumers,” said Stan Griffin, IBC’s President and CEO.
“In every region of the country where insurers compete for the business of consumers, auto insurance reforms have delivered substantial savings for drivers. These benefits are the direct result of efforts by auto insurers and governments across the country to design and implement auto insurance reforms focused on the best interests of consumers,” Griffin added.
Here is a detailed breakdown of the provincially-based reforms and the resulting savings to consumers.
Ontario
Average premiums in Ontario have decreased from approximately $1,499 per vehicle in November 2003 to $1,260 in June of 2007, a reduction of nearly 16 per cent for consumers.
Since November 2003, auto insurers have worked with the Ontario government to bring about these savings through the following key reforms.
-Getting people with whiplash related injuries into treatment faster, with fewer assessments, thus using health care resources more effectively
-Ensuring greater fairness among the fees of health care providers operating within different parts of the health care system
-Providing greater consumer protection against sometimes unscrupulous paralegal representatives
-Reinforcing that the purpose of auto insurance is to direct needed accident victims to treatment rather than cash settlements that may not be applied to rehabilitation
- Making sure that the focus of court access for further benefits is on claimants that have suffered serious and permanent injuries
“The savings we have seen in Ontario since the 2003 reforms represents the largest premium reduction ever seen in Canada,” says Mark Yakabuski, Vice-President, Federal Affairs and Ontario, and incoming President, IBC.

“For Ontario drivers, it means an aggregate savings of $4.5 billion,” he added.