15% across-the-board insurance reduction?

M

Mongrel

Well-known member
There's been some rumbling in the news about the NDP demand that car insurance rates be forcibly lowered by 15%. Apparently the Liberals put through a motion of support for this to show the NDP they're willing to play ball and so while I was doubtful about it at first, we may actually see this in the budget that's coming out soon.

Any guesses on how/if it'll affect us if the reduction does go through?
 
My completely uneducated guess is that they'll lower the rates to reflect the lowered coverage. This is nothing more than a "stop the gravy train" political promise by a party not in power.

I did like the bit where they said they'll aggressively go after fraudsters. That's where the money is.
 
They say that insurance is high due to fraud which I can believe. The real question is why are "we" paying for it? Why cant the insurance companies do a better job of finding these fraudulent cases and deal with them, how does this become "our" problem? In my mind this is the insurance companies problem and they should deal with it, and if required, take it on the chin through reduced profits. I dont believe they should be able to hike rates because they are unable to do their job.
 
Dave L said:
They say that insurance is high due to fraud which I can believe. The real question is why are "we" paying for it? Why cant the insurance companies do a better job of finding these fraudulent cases and deal with them, how does this become "our" problem? In my mind this is the insurance companies problem and they should deal with it, and if required, take it on the chin through reduced profits. I dont believe they should be able to hike rates because they are unable to do their job.
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I believe you hit the nail on the head. If they would address the real issues perhaps things wouldn't happen like they do and we could all enjoy a bit better rate. We shouldn't pay for their lack of ability to do what they're supposed to.
 
I would love to have a job where I get to catch insurance fraudsters.

Where can I apply?
 
I didn't know adjusters looked specifically into just fraud.

I'm talking about a dedicated role solely for catching people trying to scam the system.
 
Dave L said:
They say that insurance is high due to fraud which I can believe. The real question is why are "we" paying for it? Why cant the insurance companies do a better job of finding these fraudulent cases and deal with them, how does this become "our" problem? In my mind this is the insurance companies problem and they should deal with it, and if required, take it on the chin through reduced profits. I dont believe they should be able to hike rates because they are unable to do their job.
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Completely agree. You don't pass on this kind of expense to the customer, especially if the customer is required by law to buy your product.

Anyone know if this rate decrease proposal applies to motorcycles too? With insurance companies claiming that they lose money on bikes as it is, I can see them making it much harder to get a bike insured (e.g., banning SS like Jevco or nit picking little aftermarket parts) if this passes.
 
nfq said:
I would love to have a job where I get to catch insurance fraudsters.
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Would b an easy job :P

Lol, just search "insured under parents" on GTAM xD
 
nfq said:
I didn't know adjusters looked specifically into just fraud.

I'm talking about a dedicated role solely for catching people trying to scam the system.
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Look at the job description "special investigations unit" or SIU they do specifically fraud
 
AF4iK said:
Completely agree. You don't pass on this kind of expense to the customer, especially if the customer is required by law to buy your product.

Anyone know if this rate decrease proposal applies to motorcycles too? With insurance companies claiming that they lose money on bikes as it is, I can see them making it much harder to get a bike insured (e.g., banning SS like Jevco or nit picking little aftermarket parts) if this passes.
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As we received the same statutory benefit cut, it darn well should. Also, don't quote me on this, but I think it's illegal to refuse to insure someone based on vehicle. As far as I know, only a poor track record with regards to insurance specifically (non-payment) can let them legally refuse.
 
drumstyx said:
As we received the same statutory benefit cut, it darn well should. Also, don't quote me on this, but I think it's illegal to refuse to insure someone based on vehicle. As far as I know, only a poor track record with regards to insurance specifically (non-payment) can let them legally refuse.
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They just give you rates you couldn't possibly afford.
 
Since I'm here, someone asked me today if they could get insurance in the US and ride here, is that doable here? If so how?
 
Dave L said:
They say that insurance is high due to fraud which I can believe. The real question is why are "we" paying for it? Why cant the insurance companies do a better job of finding these fraudulent cases and deal with them, how does this become "our" problem? In my mind this is the insurance companies problem and they should deal with it, and if required, take it on the chin through reduced profits. I dont believe they should be able to hike rates because they are unable to do their job.
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i went to a talk by the insurance bureau enforcement division. this came up and they basically said there fully aware it happens but it costs more to stop it then just pay.

the big example was the tow trucks,they rip off the insurance company by say $600, the insurance bureau said it would cost $1000 to fight it in civil court so they just pay it. a real shame.

then theres criminal charging for fake accidents or fake rehabilitation, not sure what you know about the justice system but lets just say frauds in court are a joke and get little to no punishment.

the other one is the "rehab" clinics that give fake treatment and charge the insurance company. these get shut down periodically then another one opens up and so on. difficult to prove the scam in court also.

the whole system of insurance needs revamping but its a long ways off, and definately wont be an ndp'er.
 
No problemo! They'll jack the rates up 20%, then bring them down 15% after the govt pushes this through.
 
el_felo said:
Since I'm here, someone asked me today if they could get insurance in the US and ride here, is that doable here? If so how?
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Yes, it can be done, I know someone doing it and am incredibly jealous, as his rates around around 1/10 of what they would be here, with about the same coverage. That said, it's not actually legal unless you have a US driver's license, and to have a US license, you usually need a US residence (some states let you apply with a PO box, California for example), and even then only for a short period (3 or 6 months, I forget).

Basically, if you get in an accident, you're covered (maybe, depends on the insurance company and setup), but could be in trouble here.
 
I'm not sure about you guys, but I'm with statefarm, and my annual rate has drop $300 bucks. From $2900 to $2600, and I'm only 24, with effective date on April 26, 2013, even though the ''rate hike'' is on April 4(ish), 2013 from what I heard.

So may there is hope for insurance rate decrease in the near future?

P.S. nothing's changed in the past year
- under 25
- M2
- no tickets on record last year or this year
- same coverage
- same location of residence
 
Heard on the news today that they're moving on this down at Queen's Park. Interesting!

Apparently the same legislation is also going to give the Financial Services Comission of Ontario the right to oversee health clinics that invoice insurers.

Wonder if it'll be retroactive, or just take effect next year.
 
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