April 30th, 2020

For all Ford’s talk, auto insurance is going up

TORONTO – The provincial government signs off on every auto insurance rate hike in Ontario — and continues to approve them, despite auto accidents being down 75 per cent.

At his press conference today, Ford said auto insurance companies should lower premiums, but he has taken no action to cause insurance companies to pass on savings to drivers rather than pocketing huge profits from COVID-19, said NDP Auto Insurance Critic Tom Rakocevic.

“If the Ford government wanted to give drivers a break, they could do it today. Instead, Ford continues to let insurers take drivers for a ride,” said Rakocevic. “Drivers needs less talk and more action.”

All auto insurance rates in Ontario are approved by the provincial government through the Financial Services Regulatory Authority. NDP MPP offices continue to regularly hear from drivers who have had their rates hiked, even during the pandemic. At the same time, the Toronto Police Service confirms that both accidents and fatalities are down 75 per cent compared to this time last year.

Data source: Toronto Police Service

New Democrats have called on the government to mandate a three-month 50 per cent discount to auto insurance, and ensure that drivers can defer their reduced payments until after the pandemic if they’ve lost income as a result of COVID-19. The Ford Government has issued no official direction.