15% AUTO INSURANCE REDUCTION – DON’T COUNT ON IT

News:

QUEEN’S PARK – On Tuesday, PC MPP and Critic for Auto Insurance Jeff Yurek challenged the Minister of Finance on his 15% auto insurance reduction pledge in Question Period.  While the Minister continued to promise Ontarians the moon, it’s clear the rocket has no fuel.

Yurek’s question came a day after the Independent Brokers Association of Ontario (IBAO) testified at a Legislative Committee that, at the rate the Ministry of Finance is moving, Ontarians will not receive a 15% reduction in the near future.  The IBAO represents 12,000 brokers province-wide and became the latest group of insurance experts to point out holes in the government’s promise.

Yurek attributed the Ministry’s inaction to the lack of a credible plan.

“We’ve sat in committee for months now,” said Yurek. “And expert after expert –from industry representatives, victim advocacy groups, actuaries to even the government’s own regulator – have said a 15% reduction without a plan is a pipe dream.”

Yurek also confronted the Minister on the IBAO’s conclusion that even if the government obtains modest reductions, drivers outside the GTA will not benefit.

“I want to know why the Minister doesn’t think good drivers in my hometown of St. Thomas, or London, or Windsor, or Sarnia, or Chatham, or Strathroy, or any of the other towns and cities outside the GTA deserve a rate reduction.

“Residents of Liberal and NDP ridings outside the GTA should know the truth.  Their MPPs are telling them about all the money they’ll save.  The problem is it won’t happen.”

Experts agree that high system costs keep premiums high.  The PC Auto Insurance Action Plan highlights four key measures to reduce costs and bring down premiums.  These measures are:

1.         Reduce red-tape and bureaucracy;

2.         Reform the dispute resolution process;

3.         Implement the recommendations of the Anti-Fraud Task Force; and

4.         Increase insurer accountability.

“Bottom line, it’s irresponsible for this Liberal/NDP coalition to stand-by their empty promise.  Only a real plan will deliver results and that’s just what the Ontario PC Caucus has put forward.”

To review the PC Auto Insurance Action Plan, go to: www.ontariopc.com/autoinsurance.

To view Yurek’s question, click here.

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Media Contact: William Ross | P: 416-325-3965 | E: william.ross@pc.ola.org