Ontario Taking Further Action To Reduce Auto Insurance Rates – New Legislation Would Reduce Costs, Fight Fraud And Protect Consumers

(A Brief Foreword from Niagara At Large – Just as a reminder that Ontario’s minority Liberal government agreed to move to reduce auto insurance rates in the wake of demands to do so last year from the province’s New Democratic Party.)

Ontario Finance Minister Charles Sousa promises province’s drivers cuts in auto insurance.

 March 4^th, 2014 – Ontario is taking the next step in its plan to help reduce auto insurance rates for consumers by introducing legislation today that would protect the province’s nine million drivers and reduce costs and uncertainty in the auto insurance system.As the next step in the Auto Insurance Cost and Rate Reduction Strategy, the government is introducing the Fighting Fraud and Reducing Insurance Rates Act to protect consumers and continue its crackdown on auto insurance fraud by:

• Transforming the Dispute Resolution System to help injured Ontario drivers settle disputed claims faster. Moving administration of the system from the Financial Services Commission of Ontario (FSCO) to the Ministry of the Attorney General’s Licence Appeal Tribunal would help cut down on consumer frustration as well as curb financial and administrative stress on the system, which can increase costs and cause rates to go up.
• Establishing a transition strategy for the licensing of health service providers that bill auto insurers so that only licensed providers can get paid directly by insurers.
• Reducing the amount of time a vehicle can be stored, accruing charges, after an accident without notice to the driver from 60 days to a shorter timeframe.
• Exploring the establishment of a special investigation and prosecution unit on serious fraud, including auto insurance fraud.

The government is also continuing to explore a province-wide approach to oversight of the towing industry. Consultations with the industry that are underway now will inform recommendations that will be released later this month.

Making auto insurance rates more affordable for drivers is part of the government’s economic plan that is creating jobs for today and tomorrow. The comprehensive plan and its six priorities focus on Ontario’s greatest strengths — its people and strategic partnerships.