Rules On Car Insurance In Ontario

Car owners need to purchase some form of car insurance. The government has rules for both drivers and insurance companies. Ontario seeks to control the rates charged by the various insurance companies.

Rules about the rates charged by car insurance companies

• Each rate must be approved by the Financial Service Commission.
• Approved changes to rates get included in a government publication. That publication gets released on a quarterly basis.

What government has noted about the rates

The average rate for a car insurance policy has increased during each of the past 5 quarters. During the past 2 years, the rates have increased every quarter, except for one. In the 3rd quarter of 2018, the rate went down by 0.1%.

Government studies have identified 2 reasons for the steady rise in rates:

As vehicle start to include a larger number of technological advances, each of those improved vehicles costs more to repair. The insurance company must foot the bill for such repairs. In order to remain a profitable business, the insurance company must raise the rate that it charges, when new customers come along, or when older customers need to renew their policy.

As cars become more technologically advanced, drivers insist on using devices that operate as a distraction. Consequently, a larger number of accidents develop when a driver has chosen to use a distractive device. That creates a second reason for the increased rates.

Strategies used by government, in order to limit the steady rise in rate increases

Creating opportunities for efficiency. Insurers can save money by providing policy holders with electronic proof of their insurance. That makes it necessary for the policy holder to carry the cost of printing the proof of insurance.

Creating opportunities for competition. When each company seeks to charge a low rate, other companies adopt a similar practice. The rate of increases slows. That slowing of rates encourages more customers to buy the cheaper car insurance policies. Slowly, more riders elect to invest in a car insurance policy.

Strategy not yet adopted

Pedestrians can seek compensation, if they get hit by a motor vehicle with the help of Personal Injury Lawyer in Kitchener. Yet few pedestrians carry car insurance. The government might want to launch a campaign that would call attention to techniques for increasing the focus on the pedestrian’s safety.

For instance, pedestrians could be encouraged to wear a fluorescent vest, so that motorists would be able to see them more clearly. Even bicycle riders could be encouraged to wear that bright-colored vest. Perhaps pedestrians could carry with them a noise-making device. It would function as a type of horn. That would provide each pedestrian that needs to cross streets with an added amount of protection.