|
ALLSTATE INSURANCE DROPS PARTS DISCOUNT DEMAND
Paint Re-Imbursement Up
January 2, 2008
The year 2008, has just barely started when Allstate Insurance forwarded a note to their PRO preferred shops in southern Ontario that effective New Year's day, Allstate Insurance would be changing re-imbursed pricing levels.
Announced by Victor Pasnyk at Allstate were:
Body labour rate: $50 per hour (same)
Paint re-imbursement rate: $27 per hour (up $2)
Paint material cap: DROPPED (new)
Appearance allowance: 20% can be charged by shop (new)
Mechanical labour rate: $72 per hour (up $2)
The biggest news was the announcement that Allstate would no longer demand, from their PRO shops, a 5-10 per cent discount allowance on parts used in the vehicle repair. A number of industry associations complained loudly in June of 2001, when Allstate first announced the parts discount demand.
"The dropping of the parts discounting demand is a positive step for shop profitability and has removed a possible sore spot in Allstate, Pembridge and Pafco Insurance companies and their relationships with their preferred vendors" says John Norris of the collision repair industry trade association. "Other vehicle insurers in the province are demanding parts discounting or looking at ways to lower their costs by removing parts profitability from shops, and we hope this positive step by Allstate sends a message that parts discounting is not to be part of the future for our industry."
For more information on the collision repair industry including the latest paint re-imbursement rates reported by shops in Ontario, please see: www.ciia.com
(SEE HEADLINES)
|
State Farm® To Refund Ontario Policyholders
Aurora, Ontario, December 28, 2007
State Farm Insurance announced today it is issuing refunds to approximately 23,000 automobile insurance policyholders in Ontario as a result of an error in the application of the Graduated Licence Discount (GLD) and Driver Inexperience Factor surcharge (DIF). The DIF was introduced by State Farm in 1995 to work in tandem with the Graduated Licence Discount made available under the Graduated Licensing Program.
State Farm customers who are entitled to a refund will receive written notification beginning in January, 2008. Refunds including interest will be issued promptly and steps have been taken to correct the error. The average refund is approximately $120.00.
State Farm customers who receive a refund and require additional information should contact their State Farm agent.
"We apologize to our affected policyholders for any inconvenience this may have caused. State Farm discovered this error through an internal review, and promptly reported it to the Financial Services Commission of Ontario," said State Farm Senior Vice President, and Chief Agent, Bob Cooke. "We have worked quickly with FSCO, to resolve this matter to the satisfaction of our customers."
State Farm Insurance is the third largest auto insurer in Ontario and the fifth largest in Canada. State Farm is also the third largest property and casualty insurer in Ontario and the eighth largest in Canada. State Farm has been serving Canadians since 1938. State Farm's 507 Canadian agents currently provide insurance and financial services ranging from mutual funds and life insurance to vehicle loans and, home and auto insurance. For more information, please visit StateFarm.ca.
(SEE HEADLINES) |
Auto Insurance Reforms In Ontario, Alberta And Atlantic
Canada Deliver $6.8 Billion In Savings
August 16, 2007
Toronto - Canada's home, car and business insurers announced today that consumers have enjoyed nearly $7 billion of auto insurance premium savings since insurance reforms were implemented in 2003 and 2004 in Ontario, Alberta, and Atlantic Canada. Today's analysis is based on the latest data available from the General Insurance Statistical Agency (GISA), a government body that collects data on premiums recorded for every private passenger vehicle in those regions of the country.
After nearly four years of declining auto insurance premiums (2003-2007) in provinces with private auto insurance delivery, Insurance Bureau of Canada believes it is important to provide both a summary and a regional breakdown of the premium savings that have been delivered to consumers.
"Reaching nearly the $7 billion mark is an unprecedented level of savings for consumers," said Stan Griffin, IBC's President and CEO.
"In every region of the country where insurers compete for the business of consumers, auto insurance reforms have delivered substantial savings for drivers. These benefits are the direct result of efforts by auto insurers and governments across the country to design and implement auto insurance reforms focused on the best interests of consumers," Griffin added.
Here is a detailed breakdown of the provincially-based reforms and the resulting savings to consumers.
Ontario
Average premiums in Ontario have decreased from approximately $1,499 per vehicle in November 2003 to $1,260 in June of 2007, a reduction of nearly 16 per cent for consumers.
Since November 2003, auto insurers have worked with the Ontario government to bring about these savings through the following key reforms.
- Getting people with whiplash related injuries into treatment faster, with fewer assessments, thus using health care resources more effectively
- Ensuring greater fairness among the fees of health care providers operating within different parts of the health care system
- Providing greater consumer protection against sometimes unscrupulous paralegal representatives
- Reinforcing that the purpose of auto insurance is to direct needed accident victims to treatment rather than cash settlements that may not be applied to rehabilitation
- Making sure that the focus of court access for further benefits is on claimants that have suffered serious and permanent injuries
"The savings we have seen in Ontario since the 2003 reforms represents the largest premium reduction ever seen in Canada," says Mark Yakabuski, Vice-President, Federal Affairs and Ontario, and incoming President, IBC.
"For Ontario drivers, it means an aggregate savings of $4.5 billion," he added.
Alberta
In Alberta, Canada's second largest private auto insurance market, reform efforts have provided savings for consumers of $1.13 billion. From the peak in 2004, when premiums were, on average, $1,182 to current average levels of $1021, prices have declined by nearly 14 per cent.
Reforms to Alberta's system included the following;
"While Albertans across the board benefited from these savings, the reforms featured a strong focus on young drivers, arguably the most notable beneficiaries of these identified savings." said Jim Rivait, VP, Prairies, Northwest Territories and Nunavut, IBC.
Atlantic Canada
Total savings available to consumers in Atlantic Canada amounted to $1.17 billion.
According to Don Forgeron, Vice-President, Atlantic, IBC, these savings are a direct result of auto insurance reform efforts that focused on rising pain and suffering awards for minor injuries. Governments in Nova Scotia, New Brunswick and PEI introduced a limit of $2,500 for the compensation paid out as pain and suffering awards for minor injuries sustained in a motor vehicle collision. As was the case in Alberta, these reforms did not affect access to health care benefits or income replacement coverage available to all accident victims. Pain and suffering awards for more serious injuries were also not affected by the reform legislation.
Nova Scotia
In Nova Scotia, reforms saw premiums drop from an average of $1,048 in November 2003, to $800 in June 2007, an average reduction of nearly 24%, representing cumulative savings of $426.3 million for consumers.
New Brunswick
In New Brunswick, auto premiums have dropped significantly from an average high of $1,259 in 2003 to current average of $797.
This is a reduction of nearly 37% as a result of government reforms introduced in 2003 and 2006 providing savings of $493.5 million. In addition, government introduced a first-chance discount to give young drivers a break on their coverage as long as they maintain a clean driving record. New Brunswick drivers receive one of the best insurance deals in Canada: generous no-fault accident benefits coverage, access to the courts for serious injuries and low premiums.
Prince Edward Island
In Prince Edward Island, peak premiums in 2003 of $881 have since dropped as a result of government reform efforts to an average of $745, resulting in savings of $27.9 million for Island drivers or nearly 15.5% less than at the peak.
Newfoundland and Labrador
Changes in Newfoundland and Labrador have also achieved significant savings for drivers. Auto insurance premiums have declined, on average, from $1,126 in 2003 to $887 as of June 30, 2007, a reduction of 21%. Drivers have realized savings of $221.8 million in the last four years.
"With these savings of the last few years, it is evident that Atlantic Canada drivers continue to benefit from some of the lowest auto insurance premiums in Canada," said Don Forgeron.
Savings are based on the difference between the highest premium value in 2003 (or 2004 depending on when reforms were introduced) and the lowest premium value each year multiplied by the number of vehicles for the corresponding year.
Insurance Bureau of Canada is the national trade association of the private property and casualty insurance industry. It represents more than 90% of the non-government home, car and business insurance in Canada. To view news releases and information, visit the media section of IBC's website at www.ibc.ca.
For more information: John Karapita (416) 362-2031 extension 4351
In Ontario, contact Mark Yakabuski, VP, Federal Affairs and Ontario, and incoming President (416) 362-2031
In Atlantic Canada, contact Don Forgeron, VP, Atlantic, (902) 429-2730
In Alberta, contact Jim Rivait, VP, Prairies, Northwest Territories and Nunavut, (780) 423-2212
In British Columbia, contact Lindsay Olson, VP, British Columbia and Yukon, (604) 684-3635
In Quebec, contact Daniel Demers, VP, Quebec, (514) 288-1563
(see headlines) |
ICBC reports nine-month net income of $175 million
The Insurance Corporation of British Columbia (ICBC) has reported net income of Cdn$175 million for the first nine months of 2006; comparable to $195 million reported for the same period last year.
According to the company, overall, ICBC is in a good financial position. Earned premium revenue is growing, investment income remains strong, and operating costs continue to be low. However, growth in the cost of injury claims is an ongoing concern.
"More than 80 per cent of the total cost of all injury claims is covered by basic insurance," said Paul Taylor, ICBC's president and CEO. "That's where the cost pressures are and this will affect premiums for basic coverage."
"So far this year, ICBC has invested $29 million in various road safety and other loss management programs to help keep insurance rates low and stable," said Taylor , "but ICBC can't do it alone. The biggest single thing that customers can do to keep their premiums low is to do their part in preventing crashes. Claims costs are the biggest driver of insurance premiums.
Insurance premiums earned for the nine months ended September 30, 2006 increased to $2.43 billion, from $2.34 billion for the same period in 2005. This reflects the 6.5 per cent increase in rates for basic insurance that came into effect earlier this year, as well as the $100 million reduction in rates for optional coverage that was implemented in 2005. In addition, the number of insured vehicles on the road has increased by over 3 per cent.
Net claims costs for the first nine months of 2006 were $2.03 billion, which represents a 7.4 per cent increase over the same period in 2005. This includes a $93 million increase to reserve for prior years' claims.
One area of good news is the decrease in claims costs related to auto theft; due to the success of the Bait Car program and other ICBC-funded initiatives. Claims costs for auto theft in the first nine months of 2006 were $43 million, down from $53 million for the same period in 2005 and $58 million in 2004.
ICBC's expense ratio in 2005 compares very favourably with other property and casualty insurance companies. Low operating costs are another way that ICBC helps keep insurance rates low and stable.
ICBC's investment income continues to be strong. Income produced by ICBC's investments will mean the average premium this year is more than $175 lower than it would be otherwise.
(courtesy CollisionWeek)(see headlines)
|
Toronto - Auto Insurance Rates Threatened
Auto insurance policies include liability protection in case you cause
damage or injury to another person.
We all pay for the drunk driver, but now we could be paying even more,
due to an omission under your Ontario auto policy.
Andrew Grigg, of Hamilton Tiger Cat fame, has also become famous for a
case-setting precedence. In September 1996, with a blood alcohol limit
more than twice the legal limit, Grigg left a bar, drove through a stop
sign, took a corner wildly, picked off a lamppost and injured Andrea
McIntyre, a promising McMaster rugby athlete. She suffered mild brain
trauma, recurring depression, suffers from a higher risk of arthritis
and will never regain her athlete status.
In a truly outrageous "glitch", Grigg was not advised of his legal
rights, before a breathalyzer test and the court had to throw out his
impaired charge. He pled guilty to careless driving and paid the $500
fine. A jury awarded McIntyre $250 000 for pain and suffering and $100
000 in aggravated damages. In a surprising twist, they also awarded the
injured woman $100 000 in punitive damages, a punishment penalty,
designed to make an example of this drunk driver. The insurance company
may have to pay this fine instead of the driver as the Ontario auto
policy does not exclude punitive damage. Lawyers believe this is the
first time a jury has awarded these damages in an auto accident.
Oddly enough, commercial policies and even most homeowner policies have
exclusions for "punitive and exemplary" damages. These are monetary
damages awarded by juries when the jury feels the crime merits special
punishment. Other provincial auto policies exclude these damages, but
the Ontario policy does not.
The question arises, "How is the wrongdoer punished when his insurance
company picks up the tab?"
If the appeal judge's decision to have the insurance company pay
punitive damages holds up, every Ontario driver is probably see rate
increases. The potential for juries to make these awards will increase
and juries have no limit on punitive damages, so the sky's the limit.
Lawyers have their heads together, trying to make the court see that
insurance shouldn't pay punitive damages; guilty people should.
Careless driving and impaired driving are criminal convictions and when
combined with an accident will send a driver's insurance rates
skyrocketing. For example a driver now paying $1 654 will see his rate
jump to $14 893. These rates are sourced by InsuranceHotline.com, a
free, unbiased, online quoting service which finds the best rates for
all types of driving profiles.
For more information or media interview, contact:
Stephanie Lewis
VP Marketing and Media Relations
InsuranceHotline.com
(416) 699-8608 (see headlines) |
Royal & SunAlliance
reports strong results
Royal & SunAlliance
started the 2006 year off strong with a combined
operating ratio (COR) for the core Group of 91.6%
and 95.8% for the Canadian operation, which represents
almost a three-point improvement over Q1 2005.
In addition Royal & SunAlliance Canada saw an increase in its underwriting
profit of 50% to $18 million. While its net written premiums increased
in Q1 2006 by 11%, reaching $287 million. The Company says this spike
was driven by a retention rate of 87% and profitable growth in both commercial
and personal insurance.
In Canada, Royal & SunAlliance also reports an increase of 50% in
new business from newly appointed brokers since 2004. Royal & SunAlliance
Canada has subsequently appointed another 29 brokers in the Q1 2006.
The Core group has also enjoyed increases in its operating result from
$95 million (£47 million) in Q1 2005 to $418 million (£207
million) in Q1 2006.
This result, Royal & SunAlliance, notes is underpinned by underwriting
discipline, claims management and a focus on operational excellence.
Profit after tax for the Company was $246 million (£122 million),
a figure that is in line with the results from 2005 which included a
one-off benefit from the sale of the Company's Japanese business.
In addition, Royal & SunAlliance says it has delivered $505 million
(£250 million) against its targeted expense savings.
In addition, the Company's Core Group underwriting result is up 13% to
$143 million (£71m).
(Canadian Underwriter)
(see headlines)
|
Strong
Q1 results at ING Canada
The
first quarter of 2006 brought strong results for
ING Canada Inc. (TSX: IIC.LV) with a net income to
$185.9 million, representing a 17.3% increase from
$158.5 million the first quarter of 2005.
Revenue also increased to $1,133.8 million, up 3.2% from $1,098.8 million
in the comparable quarter of 2005.
Earnings per share for Q1 2006 amounted to $1.39, compared to $1.19 for
the corresponding period in 2005.
ING Canada also declared a quarterly dividend of $0.25 per share on its
outstanding common shares, payable on June 30, 2006 to shareholders of
record on June 15, 2006.
Claude Dussault, president and CEO of ING says the Company's investment
results improved as a result of favourable fixed income and equity market
gains.
"Our underwriting results benefited from improvements in claims frequency
and severity and although prior year claims development was less favourable compared
to last year, it was once again strongly positive in the quarter," Dussault
says. "In addition, our total number of insured risks continued to increase,
mitigating the impact of reductions in insurance rates."
Currently ING reports that it anticipates that top line growth for the
P & C insurance industry will remain below historical levels for
2006. Additionally depleting ING anticipates is underwriting.
The Company also says commercial insurance will continue to be competitive
adding that "while prices are softening, returns are expected to
remain above historical evels."
(Canadian Underwriter)
(see
headlines) |
ING
Canada Acquires Largest Member in Grey Power
Network
Monday,
April 03, 2006 - Toronto
ING
Canada (TSX:IIC.LV) announced today the acquisition
of Grey Power Insurance Brokers Inc. (GPIBI) of Stouffville,
Ontario.
With
approximately $68 million in annual premiums, five
satellite offices in Ontario and about 100 staff,
GPIBI is the largest member in the Grey Power network,
accounting for about 50 per cent of its business
volume. The Grey Power network is dedicated to serving
the home, automobile and travel insurance needs of
those 50 years of age and older.
The
Grey Power network consists of eight separate brokerages
with a total of 14 offices in Alberta, Ontario and
Nova Scotia. Grey Power insurance products are underwritten
by the Trafalgar Insurance Company of Canada, which
ING Canada acquired as part of its acquisition of
Allianz Canada in 2004. At that time, the Grey Power
network was comprised of five independent brokerages
and three owned by Allianz Canada. With its acquisition
of GPIBI, ING Canada now owns four of the eight Grey
Power brokerages.
The
transaction is not expected to have any immediate
impact on the staff or operations of GPIBI. One of
GPIBI's founding principals, Ron Griffiths, will
continue to act as President, and the company's management
team and staff will remain unchanged.
"We're
very pleased with this transaction," said Mr.
Griffiths. "We expect both clients and staff
to derive benefits through this direct association
with ING Canada, which has clearly established itself
as a leader in our industry. We look forward to growing
with them".
Trafalgar
Insurance Vice President Catherine Smola added, "GPIBI
will be well positioned to capitalize on ING Canada's
strengths, such as exceptional underwriting and claims
management, as well as marketing, actuarial and IT
support. Access to these resources will certainly
enhance the value offered to Grey Power's unique
and growing client base. We're making this investment
because the Grey Power brand is a valuable asset
with a promising future."
ING
Canada is the largest provider of property and casualty
insurance in the country, offering automobile, property
and liability insurance to individuals and businesses
through its insurance subsidiaries.
(see
headlines) |
Auto
claims frequency rebounding: Cooke
Good
news from the insurance side: George Cooke, president
and CEO of The Dominion of Canada General Insurance
Company, says auto claims frequency bottomed out
in 2005 and has started to increase in most jurisdictions.
Cooke was a guest speaker at the Canadian Collision Industry Forum (CCIF)
meeting in Mississauga, ON, on Jan. 21.
He acknowledged that consumers had become quite disillusioned with auto
insurance claims, and that claims frequency had been declining for a
few years. "Somewhere between the second and third quarters of 2005,
frequency not only bottomed out, it started to increase," Cooke
said.
He noted that a number of companies implemented "accident forgiveness" programs,
and that consumer confidence is now returning. Accident forgiveness programs
generally permit policyholders to claim their first at-fault accident
without any impact on their premiums.
Cooke believes rising consumer confidence and programs such as accident
forgiveness will help to shift the balance of collision repairs back
toward insurer-paid claims, and will prompt higher repair volumes as
well.
(courtesy www.bodyshopbiz.com)
(see
headlines) |
No-Fault
Insurance and Accident Forgiveness
No-fault
insurance is an oxymoron. Fault is determined in
every accident, using the Fault Determination Guide
as set out in the Insurance Act. To view the Fault
Determination Rules, click below:
http://www.insurancehotline.com/scripts/insquote.pl?instype=rr18_2
No-fault
insurance actually means that if you get in to an
accident, regardless whether or not it's "Your
Fault", your own insurance pays for the damage
to your vehicle and for your injuries. No-fault insurance
was created to increase consumer satisfaction with
claims handling, as you only have to deal with your
own insurance company, not somebody else's company
when paying for your damages.
Accident
Forgiveness
(Can not be bought - it can be applied if the insurance company wishes
to use it)
Absolute
forgiveness - no increase whatever in premiums after
an at-fault claim - is available to the best drivers
from some companies at no additional cost.
But
most companies will increase premiums after the first
at-fault claim in five or more years. Most insurers
which offer accident forgiveness make their clients
do penance. They drop the policyholder to a lower
claims-free or star rating, which will result in
an increase in premiums for several years. The increase
is simply less than drivers would suffer if their
insurers demoted them to a zero star or zero claims-free
rating.Some will raise premiums by more than 50 per
cent.
Further
claims, or a combination of claims and convictions
for driving infractions, could result in the insurer
refusing to renew your policy.
Convictions
for driving infractions can affect a policyholder's
right to what insurers call accident forgiveness,
as well as the ability to buy the optional claims
protection feature.
"Good
drivers" should get a break and not be saddled
with large premium increases after a small claim.
Always check to make sure you are getting the best
rate out there by going to www.InsuranceHotline.com.
Claims
Protection
(It can be bought - it's also called Premium Protection or Accident Waiver
)
Most
insurers will sell drivers claims or premium protection.
The majority of drivers would qualify to buy it,
but many have not bothered. This protection would
allow you to maintain your "good standing" with
your insurance company after an at-fault accident.
The cost is usually around $35 to $50 dollars, which
is like "buying insurance for your insurance."
This
means your renewal after an at-fault accident will
show the same star rating and there will not be an
increase in premium, as a result of the claim.
The
claims protection is usually removed immediately
after the claim and a second accident would not have
this protection. Further claims, or a combination
of claims and convictions for driving infractions,
could result in the insurer refusing to renew the
policy. In some cases, claims protection will entitle
the policyholder to an extra at-fault claim before
the insurer will refuse to renew the policy. This
protection could disappear, however, if the policyholder
reported an at-fault loss even if he or she paid
for the damages personally.
Here's
which Insurance Companies offer Accident Forgiveness
and Claims Protection
There
is NO clear delineation of what an insurer can and
cannot do to you with regards to Accident Forgiveness
or Claims Protection. "A uniform standard of
forgiveness would undermine the stated goal; to foster
a more competitive market" reports the Finance
Minister Greg Sorbara. Personally, I don't agree
with the Finance Minister on this one, says Lee Romanov.
Here
is the most comprehensive chart available indicating
which insurance companies offer Accident Forgiveness
or Claims Protection and their conditions:
http://www.insurancehotline.com/scripts/insquote.pl?instype=rr18_3
(
Courtesy of Lee Romanov, insurancehotline.com )
(see
headlines) |
ONE
THIRD OF ACCIDENTS NOT REPORTED TO INSURERS
Study says that the same driver with one ticket and
one accident can pay between $2,051 and $17,468 for insurance
in Ontario.
The
furious debate over how much Ontarians really pay
for auto insurance reached one conclusion yesterday
-- consumers should shop around.
The
Canadian Consumers' Association reported yesterday
that Ontario's rates are, on average, 45 per cent
higher than in British Columbia. And while Hamilton
drivers pay the lowest rates in the Greater Toronto
Area, their premiums are still far higher than in
other Ontario cities. You can usually find a better
deal. The Consumers group study almost 4 million
quotes for insurance.
"Most
drivers find the average company, rather than the
lowest rate," sys Lee Romanov, founder of the
Consumers' Guide to Insurance. She said most insurance
agents and brokers are tied to just four or five
carriers and some handle just one or two. That means
many consumers aren't finding the best deal.
Bruce
Cran, president of the Consumers' Association of
Canada, said owners in Ontario are getting burned.
He
says studies show a third of Ontario's car accidents
aren't reported to insurance companies
"Consumers
in Ontario have been clearly harmed by outrageous
price increases for auto insurance over the past
three years," says Cran, whose group released
a report comparing rates in Ontario, Alberta and
British Columbia.
Mark
Yakabuski, vice-president of the Insurance Bureau
of Canada, said the consumers report shows that there
are outlets among Ontario's 150 insurers that offer
comparable rates to the British Columbia's government-run
monopoly.
"What
I want to encourage people to do is indeed take advantage
of what we have here in Ontario, a very competitive
market," Yakabuski said.
"Look
at the many, many other choices that you have before
you make your final decisions as to whether you want
to go with this company or that company."
The
two sides did not agree on much else.
By
studying close to four-million quotes in Ontario,
the association concluded the province's average
insurance premium is $2,384, compared to $1,325 in
British Columbia and $1,715 in Alberta.
But
Yakabuski says the real number is more like $1,279
and that rates have fallen by 15 per cent -- about
$200 a vehicle -- over the past 18 months.
He
said the consumers report didn't take into account
discounts offered to customers with more than one
car, home insurance policies with the same company
or rewards for being a loyal customer.
The
Ontario government, which pledged to reduce auto
insurance rates when they were elected in 2003, also
presented numbers in line with industry figures.
The
average Ontarian paid $1,391 for insurance in 2004,
with 2005 rates projected at $1,379, a finance ministry
spokesman said yesterday.
Beyond
the provincial differences, the consumers report
found vast gaps between premiums paid in Ontario
cities.
Hamilton
car owners pay almost $600 less for insurance than
some drivers in the Greater Toronto Area but more
than those in Guelph, London, Ottawa, Windsor and
21/2 times more than drivers in Victoria, B.C.
Perhaps
even more eye-popping is knowing that the same driver
with one ticket and one accident can pay between
$2,051 and $17,468 for insurance in Ontario.
The
Ontario government released those numbers in its
2005 rate guide for insurance in February. It showed
a 19-year-old driver with a clean record could pay
anywhere from $5,750 to $15,551 and a 40-year-old
with no accidents or tickets pays between $1,763
and $6,992.
Romanow
says many companies charge huge rates for business
they aren't really interested in having.
"Basically,
the company is saying, 'Go away, we don't want your
type of business.' Instead of knocking on your door
and telling you to your face, they set these huge
rates."
But
some consumers are paying that premium, perhaps out
of a misguided sense of loyalty to a particular company
or the belief they can't do any better. She said
everyone should compare their premiums every time
their renewal comes up.
"Ontario
is paying 45 per cent more than B.C. because people
aren't getting the low rates. Consumers really need
to wake up."
Yakabuski
defended Ontario's free-market system, saying the
province's claims payout is "enormously more
generous" than those in British Columbia. The
average claims payment, including injury and property
damage, is close to $9,000 in Ontario and less than
$2,400 in B.C., according to the bureau.
Yakabuski
says Ontario's auto insurers paid out $1.5 billion
in health-care costs, $3 billion in vehicle repairs
and $1.6 billion defending people being sued.
Cran
counters payouts are higher in Ontario because a
$30,000 deductible on personal injuries wiped out
any small claims, and Ontario drivers are "scared
out of their tree about reporting fender-benders."
He
says studies show a third of Ontario's car accidents
aren't reported to insurance companies.
Yakabuski
also said the availability of insurance has improved
dramatically. In March 2004, there were more than
226,000 vehicles insured through Facility Association
-- the last resort for drivers who can't find regular
coverage.
Last
month, that was down to 36,868.
"Premiums
can drop from $5,000 a year to $1,700."
For
a copy of the Consumer's Association report, see here:
Thanks
to mmacleod@thespec.com 905-526-3408 with files from
The Canadian Press
AVERAGE
ANNUAL AUTO INSURANCE RATES BY CITY
York
$3,124
North York $3,005
Etobicoke $2,966
Toronto $2,950
Scarborough $2,912
East York $2,867
Brampton $2,788
Thornhill $2,735
Mississauga $2,718
Hamilton $2,537
Windsor $2,378
London $2,246
Kitchener-Waterloo $2,157
Guelph $2,150
Barrie $2,147
Ottawa $1,971
Kingston $1,934
Edmonton $1,865
Calgary $1,753
Vancouver $1,493
Victoria $944
(see
headlines) |
Ontario
drivers pay more for insurance: study
Ontario
drivers are paying up to 45 per cent more for auto
insurance than their counterparts in British Columbia,
according to a study by the Consumers' Association
of Canada.
The
average annual rate in Ontario is $2,383, compared
to $1,324 in B.C., suggests the study. And those
same results were found not only in Toronto, but
also in cities such as Sudbury, Windsor, Guelph and
London.
"Consumers
in Ontario have been clearly harmed by outrageous
price increases for auto insurance over the past
three years,'' said association president Bruce Cran
in a statement.
However,
the Insurance Bureau of Canada disagrees. It says
that premiums in Ontario are $1,279, and that premiums
are down 15 per cent since November 2003.
"Clearly,
free market, private competition is alive and well
in Ontario," said Mark Yakabuski, the vice-president
of IBC.
He
added that the average claim paid out in Ontario
is $8,878. compared to $2,391 in B.C., where the
product is delivered by a government monopoly.
"Very
simply, you get a lot more for your money in Ontario," said
Yakabuski.
Cran
disagrees. He said: "Victims of crashes have
also been impacted by the Ontario government's actions
of imposing a $30,000 deductible on benefits paid
to them."
"Innocent
victims of crashes have suffered at the hands of
the insurance industry while this industry continues
to put billions of dollars of profits in its pockets.''
Cran
blames the high premiums on so-called independent
brokers, who are choosing only to sell products from
one or two insurance companies.
"An
overwhelming compelling message has emerged from
the Study for consumers in Ontario," said Cran. "Shop
widely among many brokers and use the Internet to
find the lowest auto insurance quote."
(see
headlines) |
Auto
Insurance Rates confuse 59% of Ontario clients
In
Ontario, 59 per cent of individuals with auto insurance
are unsure how insurers are calculating their rates
and may therefore be unintentionally paying higher
premiums, according to a recent President's Choice
Financial®/Ispos Reid Survey.
In addition, 64 per cent with auto insurance exhibit interest in researching
alternative insurers based on price and product comparison. However,
the survey found that this response decreases with age with only 53 per
cent of respondents aged 55 and older likely to shop around as compared
to 77 per cent of those aged18 to 34. Women are seven per cent more likely
than men to investigate alternative insurance providers.
"Added benefits like 24/7 hassle-free claims service, a disappearing deductible,
or discounts for applying online all add to better consumer value," Geoffrey
Wilson, senior vice president, investor relations and public affairs of Loblaw
Companies Ltd., says.
A disappearing deductible is a unique feature that rewards drivers with
a reduction on their deductible for a pre-determined claim-free period,
therefore after a set amount of time with a clean driving record the
deductible will disappear completely.
According to the survey, 90 per cent of insureds view a disappearing
deductible as a "real benefit" and 82 per cent say it may help
them determine which provider to sign with.
The findings reflect results of an Ipsos-Reid poll conducted from March
22 to March 24 and March 29 to March 31, 2005. The survey was conducted
based on a random sample of 840 adult Ontario residents who had auto
insurance at the time of the interview. Data was weighted to ensure a
regional and age/sex composition representative of the Canadian population
according to the 2001 Census. (courtesy BODYSHOP magazine and www.bodyshopbiz.com)
(see
headlines) |
WHILE
MOTORISTS KEEP LOOKING FOR THEIR 10% ROLLBACK,
LINDA LEATHERDALE SEES HUGE PROFITS
By
LINDA LEATHERDALE, BUSINESS EDITOR
READ
THIS and try not to drive into the ditch. Because
Lord knows, an accident will cost you more than an
arm and a leg.
ING
Canada yesterday kicked off a new round of record
profits for insurance firms, reporting a fourth-quarter
profit of $173.1 million, up a whopping 600% from
its $24.7 million quarterly profit a year ago.
Revenues
for ING, which went public in December with an IPO,
climbed to $1 billion, compared to $808 million in
the fourth quarter of 2003.
Today,
expect a gusher of best-ever profits as the Insurance
Bureau of Canada reports 2004 results. Even without
fourth-quarter revenue, insurers had already raked
in a record $2.7 billion for the first nine months
of 2004 -- beating a $2.2-billion record profit in
2003.
Meanwhile,
motorists are bitterly complaining they haven't received
the promised 10% rollback in skyrocketing premiums,
which Queen's Park says it has delivered.
SENATE
HEARS GRIPES
And
in Ottawa yesterday, small businesses complained
to a Senate banking committee that runaway insurance
costs and abusive practices are killing them.
"Insurance
is still enemy No. 1," said Catherine Swift,
president of the Canadian Federation of Independent
Business (CFIB), which is demanding more consumer
protection and transparency from Canada's insurers.
In
her testimony, Swift warned: "The livelihoods
of thousands of small business owners, professionals
and their employees are being threatened by skyrocketing
business liability insurance premiums, and drastic
reductions in insurance coverage and availability
for many small businesses."
Bruce
Cran, president of the Consumers Association of Canada,
reacted to ING's profit by saying: "I find a
600% hike in profit absolutely obscene. It comes
from the backs of consumers aided by provincial governments
who have been hoodwinked into installing caps and
thresholds."
This
raging issue just won't go away -- even though the
Liberals at Queen's Park want us to believe they've
fixed the madness with their promised rollback in
auto premiums, which went through the roof in 2001,
2002 and 2003.
INDUSTRY
CHEERLEADERS
With
industry cheerleaders calling it "unprecedented
savings" for motorists -- Finance Minister Greg
Sorbara last month proudly announced an average premium
rollback of 10.6% for 2004, including a 6.08% drop
in the fourth quarter. That followed a 14.09% hike
in premiums in the fourth quarter of 2003, and a
15.67% hike in 2002.
According
to Sorbara, average premiums fell from $1,499 to
$1,319.
But
in exchange for this so-called rollback, motorists
are getting less, with higher collision and comprehensive
deductibles and a scaling back of benefits.
Now,
here's what Sun readers have to say:
"The
Fiberals lied again," writes R.J. Peterson,
of St. Thomas, who just received his renewal rate,
effective March 1, which jumped to $1,541.91, up
from $1,508.01.
He
went on, "Here we are with the same cars that
are another year older, same drivers that are another
year older, and NO change in driving records and
we are getting ripped off again."
Rob
Poolman writes: "I can't believe Greg Sorbara
can still stand up in front of the public and continue
to lie about our insurance rates going down." Poolman's
insurance just jumped another $100, even though he
has a perfect driving record.
HIS
RATES HAVE JUMPED
Gary
Taylor, of Barrie, said his new motorcycle insurance
bill just arrived, and it's up $30. "When I
phoned my company and said I expected a decrease,
they told me the government approved the rate."
Mark
Slobodian e-mailed me to say his auto and home insurance
rates have jumped an average of 50% in the past four
years, even though he has a spotless record and has
increased his deductibles while lowering his liability. "If
the insurance companies are crying expenses are going
up, then their profits should in no way be skyrocketing
as they are."
Julie
writes to complain her auto insurance jumped another
$100 in January, even though she drives a 1998 Taurus
with only 50,000 km on it, and she has no accidents
or tickets.
Dennis
DesRosiers, president of DesRosiers Automotive Consultants,
said the cost of insurance is the No. 1 reason why
consumers are not buying more new vehicles, which
is hurting our auto industry.
Needless
to say, I can't wait to hear the industry spin today.
(courtesy
of the Toronto SUN)
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