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View Full Version : Auto ins rates by postal code, discrimination?



ZR
10-16-2018, 06:49 AM
Two Ontario legislators from different parties introduced separate bills on Monday aimed at stopping auto insurance companies from charging drivers higher premiums based on where they live, saying it was time for the practice to end.
The politicians -- one from the ruling Progressive Conservatives and another from the Opposition NDP -- said they want the Financial Services Commission of Ontario, which regulates insurers, to stop the practice they call discriminatory.
Parm Gill, a Tory legislator from Milton, Ont., introduced a private member's bill on the matter, saying drivers from the communities around Toronto pay higher auto insurance rates than those living in other areas of the province.

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"Ontario's auto insurance rates are amongst the highest in Canada despite having some of the lowest levels of accidents and fatalities," he said. "Our government is committed to ensuring fairness in rate setting and ending discriminatory practices."
Gill said his bill would ensure drivers are evaluated based on their driving record and not where they live.
"This bill, if passed, will promote personal responsibility," he said. "A good driver in my riding of Milton should pay the same rates as a good driver anywhere else."
NDP legislator Gurratan Singh introduced a similar bill on Monday and said his legislation, if passed, would require the Financial Services Commission of Ontario to refuse approval for risk classification systems that don't consider the Greater Toronto Area as a single geographic region.
"Drivers in the Peel region and other parts of the GTA continue to arbitrarily pay significantly higher auto insurance rates than any where else in the province," he said.
Singh said drivers in his riding in Brampton pay on average $1,000 a year more in auto insurance premiums each year than a driver in north Toronto. His bill would result in lower insurance rates for GTA drivers, he said.
"It will make sure that insurance companies are not allowed to gouge people simply based on the neighbourhood they live in or the municipality that they live in," he said.
Singh wouldn't say if he will work with Gill to meld their bills into one.
On Friday, the Financial Services Commission of Ontario announced insurance rate increases for the third quarter of 2018, approving a 2.06 per cent increase. In the second quarter of 2018 the commission approved a 1.11 per cent increase.
Finance Minister Vic Fedeli wouldn't say if the government will support the Gill's legislation, committing only to review it once it is tabled.
Fedeli's spokesman said the government is looking at the regulatory environment surrounding the province's auto insurance sector, with the potential of allowing more competition in the marketplace.
"Our government is committed to ensuring fairness in rate setting, ending discriminatory practices and working towards a system that puts drivers first," Robert Gibson said in a statement.
Pete Karageorgos, director of Consumer and Industry Relations at the Insurance Bureau of Canada, said insurers would welcome modernization of the sector regulations and acknowledged that some of them are "stale."
He noted that the Financial Services Commission of Ontario sets out how insurance rates are set, including various rating factors used to set premiums.
"They are the ones that set those rules in place in terms of using things like a person's driving record, the type of car they drive, even where they live," he said. "Geography is something that's used and it's used not just here in Ontario but in every insurance market across the country."

stangstevers
10-16-2018, 06:57 AM
Here's a different perspective and of course I'm the one that's different lol

Driving shouldn't be cheap, it should be more expensive. Less drivers on the road, better for those who can afford it. It should also be a LOT harder to obtain the privilege to drive and a LOT more strict. I want to see a "3 strikes and you're out" policy. CAUSE 3 crashes and you get banned for life from driving... caught driving without a license and it's 10 years in jail.

ZR
10-16-2018, 07:00 AM
When I moved from Bayview and Sheppard to Kennedy and Finch, in spite of no claims or tickets my rates increased by nearly 30% at renewal time. At the same time, my yr younger brother with a couple of tickets who drove nearly an hour to the city for work each day in pretty much same vehicle as mine was paying approx half. Even today, difference in our rates are approx the same and yes he still drives a distance each and every day for work. When shopping my ins a couple years back, several declined to quote citing they are not competitive in my postal code.
Look, I don't give a rats azz the peeps around me are more prone to having an accident, feel I'm subsidizing their bad driving via my rates. If something should change and me the driver is more prone to, or has had an accident or two, only then should I be paying what I am today. While I hope this kind of bill passes and it actually works, just as likely all it does is means rates balance out and they go up even more for all of us.

5.4MarkVIII
10-16-2018, 07:34 AM
Problem is what does this mean? People who pay a premium right now are not going to get a decrease. Instead anyone paying less is gonna get an increase. That seems to be the way insurance works.

stangstevers
10-16-2018, 08:06 AM
Problem is what does this mean? People who pay a premium right now are not going to get a decrease. Instead anyone paying less is gonna get an increase. That seems to be the way insurance works.

pretty much that lol

I like how a 2006 honda civic (with only liability) is $150 cheaper than a 2017 GT Mustang with full coverage. LOL

Laffs
10-16-2018, 08:29 AM
Do people have no concept of how actuarial data works?

Obviously your location plays in to rates? Certain areas have higher instances of theft, accident, claims, so by residing in one of those areas you are more likely to experience one of those and therefore the rate is set higher. If you are the worlds "best" driver living in an area where the other 100,000 people around you have 70% claims exposure, then ya you're most likely going to have a claim.

This to me would make me want to vote out which ever legislator introduced it because it shows they are literally basing decisions off gut/hunch logic and not numbers and data.

RedSN
10-16-2018, 09:01 AM
....they are literally basing decisions off gut/hunch logic and not numbers and data.
that's how politics works.
....not to be confused with math or science.

Screw
10-16-2018, 10:09 AM
ZR I would have charge you more @Bayview & Shepard just cuz there’s more money there lol

stangstevers
10-16-2018, 12:14 PM
science and facts aside... who the fuck uses statistics today when feelings can get hurt?

I'm not sure why SJW's aren't rioting because insurance policies are "racist", "bigoted", "sexist", "classismist"...

:D

G-ForceJunkie
10-16-2018, 09:07 PM
On my 10km drive to work I probably encounter 20 other cars...kinda makes sense that my insurance is cheaper than the city, no?

If they aren't going to allow setting rates based on postal code, then they shouldn't allow based it on gender or age either. (Eg. Either follow the probabilities, or don't)