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Reducing Auto Insurance Premiums for Ontario Drivers

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Reducing Auto Insurance Premiums for Ontario Drivers

New Ontario Government Reduces Costs, Cracks Down on Fraud, and Passes Savings onto Consumers

Ministry of Finance

The new Ontario government is proposing a strategy that would reduce auto insurance premiums by 15 per cent on average. 

To achieve this reduction, the government will introduce legislation that would, if passed:

  • Require a premium reduction of 15 per cent on average.
  • Require insurers to offer lower premiums to consumers with safe driving records.
  • Provide the Superintendent of Financial Services with the authority to require insurers to file new rates.
  • Expand and modernize the Superintendent's investigation and enforcement authority, focussing on fraud prevention.
  • Give the Financial Services Commission of Ontario the authority to license and oversee health clinics and practitioners who invoice auto insurers.
  • Make the Superintendent's Guidelines, incorporated by reference in the Statutory Accident Benefits Schedule, binding. 

When fully implemented, this strategy would benefit over nine million drivers and would decrease overall premiums in Ontario by $1.5 billion a year, and reduce the average annual premium per insured vehicle by $225. 

These changes build on the government's existing plan to reduce rates and crack down on fraud to help protect people and build a prosperous and fair Ontario.

Quick Facts

  • The strategy would build on the success of the government’s 2010 reforms and a series of fraud prevention changes in January 2013. It also addresses additional recommendations proposed in the final report of the Auto Insurance Anti-Fraud Task Force and builds on actions the government has already taken to combat fraud and protect consumers.
  • In 2012, rates decreased 0.26 per cent.
  • Accident benefits claims costs increased by 118 per cent from 2006 to 2010, despite a reduction in the number of auto accidents, number of people injured in auto accidents and the severity of injuries suffered over the same time period.
  • From 2004 to 2012, auto insurance rates increased 11.4 per cent in Ontario, while the Consumer Price Index rose 18.4 per cent.

Additional Resources


“Reducing auto insurance claim costs is part of the government’s plan to lower premiums for Ontario drivers. We will crack down on fraud, make roads safer and ensure people enjoy good benefits, security and proper care.”

Charles Sousa

Minister of Finance

Media Contacts



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