Will the Ontario Budget make auto insurance more affordable?
The Ontario government recently released its 2023 budget. Included within are proposals that could save drivers money on their auto insurance. Rising insurance premiums have been recognized as a source of financial stress for Ontario drivers who are already dealing with higher costs of living. To help curtail these costs, the budget outlines initiatives that would increase competition in the auto insurance market, as well as tabling efforts to reduce the cost-driving force of fraud.
Here are the proposals being made to save drivers money on auto insurance:
Enabling more choice for Ontario drivers
Giving insurance providers more flexibility is one way the 2023 budget is hoping to provide Ontario drivers with more money-saving choices. Currently, drivers are required to purchase Direct Compensation-Property Damage (DC-PD) coverage. The government has put forth a proposal to make this optional – a welcomed benefit for drivers of older cars that would reduce the cost of premiums.
Encouraging competition to improve affordability
Another fundamental way to reduce prices is to increase competition. The 2023 budget includes a proposal that would allow insurance providers to offer more discounts and incentives. This gives drivers the opportunity to capitalize on these promotions and take advantage of the competitive climate that increased promotional activities can create.
Fighting fraud in auto insurance to reduce premium costs
Fraud drives the costs of auto insurance up significantly. According to the Insurance Bureau of Canada, the estimated cost to each driver is $236.
The 2023 budget includes a proposal to amend the Insurance Act, requiring providers to report fraud-related updates to the Financial Services Regulatory Authority of Ontario (FSRA). The proposal would also give drivers the ability to report fraud to the FSRA. The theory is that this additional transparency and oversight would give providers a heightened awareness of emerging risks and increase their ability to combat them.
Would You Like To See How You Can Save On Auto Insurance?
While the proposed changes to Ontario auto insurance do look encouraging, implementation will take time – but you may be able to save sooner. We would be happy to review your auto insurance policies and help you save money. Contact us at 1-800-516-6275, or book an appointment with one of our experienced insurance agents, and we’ll evaluate your auto insurance policies and ensure you aren’t overpaying for the coverage you need.