Ontario motorists may soon see the end of “unfair” insurance policies with premiums based on postal codes, Premier Doug Ford said Thursday.
The Ford government recently implemented driver-friendly policies by waiving license plate renewal fees, waiving some highway tolls, and reducing gas tax.
But there’s another common complaint the government seems ready to tackle – discrimination by postcode, and many drivers are unhappy that their premiums may rise depending on where they live, even if they have a Clean driving record, with no accidents or fines.
At a press conference on Thursday, Premier Doug Ford seemed ready to tackle the issue, calling insurance premiums based on where you live “unfair” and saying they could affect at their end.
“I know we’re working on a plan for the insurance companies, as far as I’m concerned it’s totally unfair to the people of Brampton, Scarborough, they’re going after these people based on their postcode “, did he declare. at a press conference.
“It will end very quickly. They must treat people fairly.
Matt Hands, director of insurance at RateHub, an insurance comparison website, told CTV News Toronto that “it doesn’t make sense that someone with a good driving record should pay more because they lives in a certain area”.
He said changing the insurance system would take time and he thinks that if people paying higher fares get a reduction in insurance, other drivers could see their fares go up.
“They are going to have to spread the risk, which could mean that people who paid a lower rate, for example in London or Ottawa, could see an increase to help offset the decreases in other regions, because the insurance consists to balance the risk,” he said.
In the provincial budget released in April, the Ford government also announced its intention to crack down on insurance fraud, create more choice for consumers and improve fairness in the system.
Although the Prime Minister has stated that insurance reform is coming, there is no timeline as to when it might happen. Yet after years of talking about it, substantial changes could be made to the province’s insurance system.