The Ontario Liberals have revived their bill to reduce auto insurance rates by 15 per cent by August of next year, and are urging customers who have yet to see car insurance rate reductions to shop around.
"It's up to consumers to choose the best possible rate that they can get," Finance Minister Charles Souza told CP24.
On average, insurance rates have dropped 5.44 per cent since the Auto Insurance Cost and Rate Reduction Strategy was put in place last year, with about a dozen companies ahead of the curve with rate reductions of over 10 per cent. The bill was put on hold when the June 12 election was called, but was quickly reinstated when the Liberals came back in power.
The Financial Services Commission of Ontario (FSCO) reports that auto insurance rates increased 0.22 per cent on average in the second quarter, largely due to one company's 4.19 per cent increase approval. Souza told reporters this is because many companies already priced themselves below the market and now these companies are trying to figure out how to remain competitive.
Souza is sure that consumers can get better auto insurance rates; they simply have to shop around.
"You can find better rates because it's a competitive system," the Finance Minister told Toronto Sun.
The Ontario Liberals are confident they'll be able to reach their 15 per cent auto insurance rate reduction target by August of next year, saving consumers an average of $225, despite the fact that the Finance Minister acknowledged to the Toronto Star that Ontario will fall short of its 8 per cent cut in car insurance rates targeted for August, 2014. Regardless of the delays, for consumers heeding the Finance Minister's advice, shopping around is stress-free.
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