NDP: Insurance companies hike rates ahead of mandatory rate reduction

NDP Consumer Services Critic Jagmeet Singh says some GTA residents are seeing significant increases in their auto-insurance rates despite clean driving records.

“Just a few weeks ago, this government finally committed to our NDP proposal to reduce auto rates by 15%. But recently I’ve heard from a number of people that they’re seeing their insurance premiums increase by 15% to 20% upon renewal. These are people with absolutely clean records and no claims whatsoever,” explained Singh during question period today.

The Bramalea-Gore-Malton MPP has been fighting for a mandatory reduction of auto insurance rates in Ontario. A modified version of his proposal was incorporated into the Liberal budget currently being debated.

“People in my community and across Ontario are paying some of the highest premiums in Canada. These are tough times. Families are struggling to make ends meet,” said Singh.

“This government said that they will take our NDP proposal to reduce auto insurance rates by 15% to make life more affordable,” said Singh. “How many times will this government allow insurance companies to increase premiums before they actually implement that 15% reduction?”

1 Comment

  1. Simply put you can’t cut prices without cutting costs. If you want cheaper coffee, you have to reduce the cost of the beans or the cream that goes in the coffee or the rent the store owner has to pay. To get cheaper auto insurance, we have to reduce the costs and red tape in the system. There is still much work to do with this. Auto insurance costs too much in Ontario. The industry is ready to work with the government on real, practical solutions to the complex problems plaguing the system.

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