Why Do Ontario Drivers Pay More Than Other Canadians?
The insurance landscape in Ontario is different than elsewhere in Canada. The minimum coverage offered to consumers is set by the Ontario government. Its broader than what is offered in other provinces. Insurance companies cover medical expenses after a vehicle accident. The majority of these costs are not covered by OHIP which isn’t the case elsewhere in Canada. The insurance product framework incentivizes the escalation of claims which in turn increases lawyers’ contingency fees. Insurance fraud is more prevalent in Ontario than elsewhere in the country. There are many inefficiencies within the auto insurance framework in Ontario which leads to higher rates across the board.
FSCO, the government regulatory agency overseeing Ontario auto insurance has been replaced with FSRA, the Financial Services Regulatory Authority. Revamping the Ontario auto insurance product is a high priority item on their agenda, so changes are likely to come at some future point.