Ontario Independent

Tuesday, February 27, 2024

Ford promises to stop ‘unfair’ insurance rates based on zip codes

Ford promises to stop insurance premiums that are based in part on postal codes.

Key Takeaways:

  • According to Premier Doug Ford on Thursday, the “unfair” insurance policies with rates based on zip codes for drivers in Ontario may soon come to an end.

According to Premier Doug Ford on Thursday, “unfair” insurance policies with prices based on zip codes may soon end for drivers in Ontario.

The Ford administration has recently implemented driver-friendly policies, including eliminating license plate renewal fees, eliminating some highway tolls, and lowering the gas tax.

Even though they hold a spotless driving record and no fines or accidents, many drivers are concerned that their premiums could increase based on where they live. This is another popular gripe that the government seems prepared to address.

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Premier Doug Ford appeared prepared to address the problem at a press conference on Thursday, calling location-based insurance pricing “unfair” and speculating that they would soon be eliminated.

At a news conference, he stated, “I know we’re working on a plan for insurance companies, as far as I’m concerned, that’s extremely unjust for the people of Brampton, of Scarborough, they’re going after these folks based on their postal code.

There will be an abrupt stop to that. People must be treated decently by them.

It “doesn’t make sense that somebody with a clean driving record has to pay more because they reside in a given location,” said Matt Hands, director of insurance for RateHub. This website compares insurance rates to CTV News Toronto.

Ford promises to stop insurance premiums that are based in part on postal codes.
Ford promises to stop insurance premiums that are based in part on postal codes. Image from The Star

He asserted that altering the insurance system would take time and that other drivers’ premiums may increase if those with higher insurance costs received a reduction.

Because insurance is all about balancing risk, he explained, “they are going to have to distribute the risk, so it might mean that those who have been paying a lower rate in say London or Ottawa might see a rise to offset the drops. In the other places.”

The Ford administration also outlined its goals to increase consumer choice, combat insurance fraud, and improve system fairness in the provincial budget unveiled in April.

Although the premier predicted insurance reform, there is no timetable for when it would occur. Nevertheless, following years of discussion, the province’s insurance system may undergo significant adjustments.

Source: CTV news

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