Horwath NDP's Bill Will Hike Auto Insurance Rates in Guelph-Wellington

Bill Will Lower Rates For Dangerous and Drunk Drivers

Ontario NDP Bill Will Hike Auto Insurance Rates in Guelph

Reward Dangerous & Drunk Drivers

( Guelph )   The Ontario NDP is proposing legislation that will force safe drivers in Guelph to pay more for auto insurance while lowering rates for dangerous drivers, said Liberal MPP Liz Sandals.


“Andrea Horwath’s auto insurance scheme is a total wreck.  It will lower rates for dangerous and drunk drivers by forcing Waterloo Region families to pay more,” said Milloy.  “Independent experts agree the Horwath NDP bill will mean higher rates and dangerous roads.  Even Mothers Against Drunk Driving is against this dangerous NDP bill.”

Bill 45, the Insurance Amendment Act, would remove geographical location as a factor in determining auto insurance rates – an effort to reduce rates for Toronto drivers at the expense of drivers in other regions of Ontario .  But the misguided plan would dramatically increase the cost of auto insurance all across Ontario , with drivers outside Toronto being especially hard-hit.

The NDP bill also stipulates a driver’s safety record would only reflect at-fault accidents, not driving offences like impaired driving or street racing.   

“Drivers pulled over for dangerous driving offences such as drunk driving and street racing would face no increase in premiums,” said Milloy, citing public comments from MADD Canada:

 “[The NDP] bill will force responsible drivers to subsidize the insurance premiums of dangerous drivers. … In our view, the bill sends all the wrong messages, punishes responsible drivers, rewards dangerous drivers, and will increase the risk to Ontario road-users.”

–    Andrew W. Murie, CEO, MADD Canada

Further, independent experts agree the bill will hike auto insurance rates across Ontario , particularly outside of Toronto :

"The cost of implementing a new, unproven rating system will increase the premiums of all drivers."

–    J.S. Cheng Partners, Expert Report, April 12, 2012


“The rates for people in other parts of the province [outside of Toronto ] would rise dramatically.”

–         Philip Howell, CEO, Financial Services Commission of Ontario

Testimony to Committee on General Government, May 28, 2012

“[The NDP bill] would have a negative impact on premiums outside of the GTA.”

 Bryan Yetman, Past President, Insurance Brokers Association of Ontario

Testimony to Committee on General Government, May 30, 2012

Ontario Liberal measures to tackle auto insurance rates are getting results.  Since 2004, auto insurance rates have risen at a slower pace than inflation and more recent changes that include the creation of the Auto Insurance Anti-Fraud Task Force have resulted in a decrease of 0.18 per cent in rates in the first quarter of 2012. These trends are encouraging given that under the former PC government auto insurance rates jumped 44.9 per cent.

“Ontario Liberal auto insurance reforms have stabilized prices and kept rate increases lower than inflation following years of skyrocketing rates under both the NDP and PCs,” concluded Milloy.  “The Horwath NDP rate-hike proposal to penalize Waterloo Region families is the wrong approach.”