Insurance Bureau of Canada warns Sault drivers about Bill 45
We have read the NDP defence of Bill 45, including a statement that the bill was "designed specifically that Northern Ontarians are not impacted". In truth, Bill 45 will result in lower premiums for Mr. Singh's constituents at the expense of all others. Our independent expert evidence proving that this course of action will hurt northern and rural Ontarians has been completely ignored.
Bill 45 is so flawed that people convicted of drunk driving and people driving expensive luxury vehicles will pay less for insurance while good drivers in northern Ontario will have to pay more. Bill 45 is patently unfair.
Dear northern NDP members. Vote against this. Signed, David
In an effort to reduce rates for Toronto drivers, Bill 45 would remove geographical location as a factor in determining auto insurance rates, which would result in certain increases in other parts of Ontario - particularly in the North but also in rural areas.
In addition to increasing auto insurance rates in Northern Ontario, Bill 45 has a number of other very serious consequences.
For example, the legislation limits the definition of “driving safety record” to actual accidents, which would mean that if a driver were caught drunk driving or street racing but did not get into an accident, their premium would not be affected.
Mother’s Against Drunk Driving (MADD Canada) publicly opposes Bill 45:
“[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, Bill 45 does not take into account the make, model and year of the car so drivers with less expensive vehicles will end up covering the premiums of those with luxury vehicles and sports cars.
Experts who have commented on Bill 45 agree that it is poor public policy:
"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 the provincial Standing Committee on General Government, May 28, 2012
“[The NDP bill] would have a negative impact on premiums outside of the GTA.” - Bryan Yetman, Insurance Brokers Association of Ontario, Testimony to Committee on General Government, May 30, 2012