By LINDA LEATHERDALE, BUSINESS EDITOR
11-Sep-2003, 05:01 PM
#1
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By LINDA LEATHERDALE, BUSINESS EDITOR
Thu, September 11, 2003
Driven to madness
Insurance system needs overhaul
By LINDA LEATHERDALE, BUSINESS EDITOR
It's enough to drive you mad. Ontario motorists are being gouged by auto insurance premiums up to 500% higher than premiums in provinces with public insurance -- and Queen's Park walks away with 5% of the money.
Yes, voters beware. Among the obscene $4.4 billion paid by Ontario drivers each year in taxes is a 5% tax on auto insurance premiums.
We also get gouged by a provincial gas tax of 14.7 cents a litre, a 8% sales tax on repairs and replacements made under warranty, a tax for fuel conservation under the Retail Sales Act, and now skyrocketing toll charges for the 407 Express Toll Route (ETR), better known as the Extreme Toll Ripoff.
By the way, a vote for Premier Ernie Eves or Liberal Leader Dalton McGuinty is a vote for more toll roads -- while neither has the guts to make the insurance biggies play fair or get out of town.
Bottom line is Ontario is the most expensive province to keep a vehicle on the road, with latest data from the Canadian Automobile Association showing a cost of $7,360.57 in 2000-01.
But believe me, after yesterday's chilling report by the Consumers Association of Canada -- revealing Ontario's rates are the highest -- it's safe to bet that cost has soared to much higher levels.
"Some consumers in Toronto pay up to 500% more for auto insurance than do equivalent consumers in provinces with public auto systems," said Bruce Cran, national secretary for the Consumers Association, which released the study.
He went on: "The highest actual rate quote we obtained in all of Canada was a shocking $18,000 in Toronto."
No wonder an auto insurance revolt is growing like wildfire.
Even in smaller Ontario cities, like Barrie, Thunder Bay, Ottawa and London, drivers pay a lot more than in comparative cities in B.C., Manitoba and Saskatchewan, where there is public auto insurance.
Even in Quebec, where auto insurance is half-private and half-public, rates are cheaper.
And this is very interesting: The city of Lloydminster straddles the border of Alberta, where there's private insurance, and Saskatchewan, where it's publicly run. "A person living 30 metres across the street on the Alberta side can pay up to $5,000 more each year for the same vehicle and get worse insurance coverage," Cran said.
SKYROCKETING COSTS
The Consumers Association, by the way, is a non-political organization which lobbies on behalf of Canada's consumers, who account for two-thirds of our economy and who are being slaughtered by skyrocketing insurance costs.
Cran's message is clear to Ontario's political leaders, who go to the polls on Oct. 2. -- "Don't be afraid to look at a public system, like the B.C. model."
The very thought has put the Insurance Bureau of Canada on the attack. A day before the CCA's report, the IBC warned the average claim payout in B.C. is only $2,368, while in Ontario it's $6,811 -- which they want us to believe gives Ontario drivers a better deal.
What bunk! Fact is the insurance industry in Ontario has been at Queen's Park screaming that growing fraud has led to such high claims payouts that they can't make a profit. So to appease them, Eves has promised to cut back on health-care benefits to save insurance firms $400 million, which he hopes will reduce premiums by 5%-to-30%. McGuinty promises a 10% premium rollback.
Fact also is benefits in B.C. are comparable to Ontario, while public auto insurance in B.C. puts $50 million into road-safety programs, runs the motor vehicle branch to save $150 million, and set up a used-car registry so buyers know if a vehicle has been in an accident.
NDP Leader Howard Hampton, who promises public auto insurance, estimates it will cost $500 million to set up. Cran says that money will be recouped in the first year while drivers enjoy reasonable premiums. Cran is adamant that taxpayers do not subsidize public rates.
Now, let me be clear: I've never wanted government interfering in private enterprise, but this insurance madness must be stopped, NOW! No more Mr. Nice Guy.
Driven to madness
Insurance system needs overhaul
By LINDA LEATHERDALE, BUSINESS EDITOR
It's enough to drive you mad. Ontario motorists are being gouged by auto insurance premiums up to 500% higher than premiums in provinces with public insurance -- and Queen's Park walks away with 5% of the money.
Yes, voters beware. Among the obscene $4.4 billion paid by Ontario drivers each year in taxes is a 5% tax on auto insurance premiums.
We also get gouged by a provincial gas tax of 14.7 cents a litre, a 8% sales tax on repairs and replacements made under warranty, a tax for fuel conservation under the Retail Sales Act, and now skyrocketing toll charges for the 407 Express Toll Route (ETR), better known as the Extreme Toll Ripoff.
By the way, a vote for Premier Ernie Eves or Liberal Leader Dalton McGuinty is a vote for more toll roads -- while neither has the guts to make the insurance biggies play fair or get out of town.
Bottom line is Ontario is the most expensive province to keep a vehicle on the road, with latest data from the Canadian Automobile Association showing a cost of $7,360.57 in 2000-01.
But believe me, after yesterday's chilling report by the Consumers Association of Canada -- revealing Ontario's rates are the highest -- it's safe to bet that cost has soared to much higher levels.
"Some consumers in Toronto pay up to 500% more for auto insurance than do equivalent consumers in provinces with public auto systems," said Bruce Cran, national secretary for the Consumers Association, which released the study.
He went on: "The highest actual rate quote we obtained in all of Canada was a shocking $18,000 in Toronto."
No wonder an auto insurance revolt is growing like wildfire.
Even in smaller Ontario cities, like Barrie, Thunder Bay, Ottawa and London, drivers pay a lot more than in comparative cities in B.C., Manitoba and Saskatchewan, where there is public auto insurance.
Even in Quebec, where auto insurance is half-private and half-public, rates are cheaper.
And this is very interesting: The city of Lloydminster straddles the border of Alberta, where there's private insurance, and Saskatchewan, where it's publicly run. "A person living 30 metres across the street on the Alberta side can pay up to $5,000 more each year for the same vehicle and get worse insurance coverage," Cran said.
SKYROCKETING COSTS
The Consumers Association, by the way, is a non-political organization which lobbies on behalf of Canada's consumers, who account for two-thirds of our economy and who are being slaughtered by skyrocketing insurance costs.
Cran's message is clear to Ontario's political leaders, who go to the polls on Oct. 2. -- "Don't be afraid to look at a public system, like the B.C. model."
The very thought has put the Insurance Bureau of Canada on the attack. A day before the CCA's report, the IBC warned the average claim payout in B.C. is only $2,368, while in Ontario it's $6,811 -- which they want us to believe gives Ontario drivers a better deal.
What bunk! Fact is the insurance industry in Ontario has been at Queen's Park screaming that growing fraud has led to such high claims payouts that they can't make a profit. So to appease them, Eves has promised to cut back on health-care benefits to save insurance firms $400 million, which he hopes will reduce premiums by 5%-to-30%. McGuinty promises a 10% premium rollback.
Fact also is benefits in B.C. are comparable to Ontario, while public auto insurance in B.C. puts $50 million into road-safety programs, runs the motor vehicle branch to save $150 million, and set up a used-car registry so buyers know if a vehicle has been in an accident.
NDP Leader Howard Hampton, who promises public auto insurance, estimates it will cost $500 million to set up. Cran says that money will be recouped in the first year while drivers enjoy reasonable premiums. Cran is adamant that taxpayers do not subsidize public rates.
Now, let me be clear: I've never wanted government interfering in private enterprise, but this insurance madness must be stopped, NOW! No more Mr. Nice Guy.
12-Sep-2003, 10:48 PM
#2
Marty that's one interesting article.
However, don't let anyones political platform fool you. NDP ruined this province in its last term, as you know you were around for Bob Rae. Mr. Rae ran this province so far into debt forcing future governments to slash and cut services in order to pay down the interest and the debt.
Where does Mr. Hampton think the $500 million will come from if not from the taxpayers? He will certainly not cut any services, nor will he cut welfare benefits. He will certainly though bend over for the unions and give them whatever they wish.
As for Mr. McGuinty, where is he going to get his 10% savings from? Hmmm, taxpayers again.
The Conservative Government has certainly pissed plenty of people off, cutting excess services in order to reduce our taxes, and pay down the provincial debt. This is what they said they would do in their original campaign. I firmly believe Ernie Eves will produce reduction in rates, and he will do it by cutting back.
Unions and leftists will certainly not rejoice in this correct fiscal management.
As for the insurance companies blaming fraud. I definately believe that to be true. The few ruin it for the many.
As for Hampton thinking he will make the money back quickly, he is sadly mistaken if his government does not force stronger penalties for fraud, and facilitate the law enforcement with the man power to investigate. Heaven forbid the politician thinks things through before implementation.
As for B.C. insurance may be lower than here, but their economy is in very bad shape, and their cost of living is atrocious. Hmmmm, what political party did they finally get rid of? NDP.
If the NDP EVER gets elected back into this province, I'll be the first packing my bags to leave!!
However, don't let anyones political platform fool you. NDP ruined this province in its last term, as you know you were around for Bob Rae. Mr. Rae ran this province so far into debt forcing future governments to slash and cut services in order to pay down the interest and the debt.
Where does Mr. Hampton think the $500 million will come from if not from the taxpayers? He will certainly not cut any services, nor will he cut welfare benefits. He will certainly though bend over for the unions and give them whatever they wish.
As for Mr. McGuinty, where is he going to get his 10% savings from? Hmmm, taxpayers again.
The Conservative Government has certainly pissed plenty of people off, cutting excess services in order to reduce our taxes, and pay down the provincial debt. This is what they said they would do in their original campaign. I firmly believe Ernie Eves will produce reduction in rates, and he will do it by cutting back.
Unions and leftists will certainly not rejoice in this correct fiscal management.
As for the insurance companies blaming fraud. I definately believe that to be true. The few ruin it for the many.
As for Hampton thinking he will make the money back quickly, he is sadly mistaken if his government does not force stronger penalties for fraud, and facilitate the law enforcement with the man power to investigate. Heaven forbid the politician thinks things through before implementation.
As for B.C. insurance may be lower than here, but their economy is in very bad shape, and their cost of living is atrocious. Hmmmm, what political party did they finally get rid of? NDP.
If the NDP EVER gets elected back into this province, I'll be the first packing my bags to leave!!
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