The latest round of auto insurance rate changes are of no real value to drivers
The Provincial government announced a series of auto insurance changes which will be of little real benefit to drivers. These rate cuts form part of their core promise to the electorate to reduce rates by 15%. It would appear that the government is reducing the ‘sticker shock’ consumers have when paying their insurance but are being less forthright about the drastic to cuts in accident benefits to those in need of them.
Proposed changes include:
- Mandatory reduction of premiums
- Premium breaks for drivers using snow tires
- Disallowing premium increases for minor collisions that meet certain criteria
The budget allows car insurers to reduce the mandatory maximum coverage for medical and rehabilitation benefits significantly, and will see insurers consolidating those benefits. The changes are endorsed by the industry group Insurance Bureau of Canada (IBC), but the Consumers’ Association of Canada says that the changes won’t change the longstanding core issues for consumers of rising rates and significantly reduced coverage.