Auto insurance premium rates hike up even before the costs are being cut


CULTRF-00003511-001Increase in the rates of auto insurance has been approved of by Ontario prior to the changes that were aimed at reducing costs of minor claims of injury. This has taken many people by surprise as it can increase their monthly financial burden.

The day when standard accident benefit coverage is said to reduce, is when the increase (27.3% for money) would come into effect i.e. the 1st of September.

All the increases calculated and approved for TD in the duration of 12 months lies at 54%. Although TD general lost about 1.2 million dollars in the year 2009, it was still beyond any insurer.

The representing insurers of the industry had an average of 5.37% increase which had been approved of in the year 2010 during the 1st quarter itself. This was announced late on Thursday by the financial services commission of Ontario.

As approved in 2008, the increases reached up to 5.59% and up to 8.77% in the year 2009. and totaled the annual average to 12.3%.

The spokesman for COSECO insurance and company, keonard Sharman stated that there was a 20% increase in the company’s cumulative in the last year because of the concentration of its business mainly in the greater area of Toronto.

 “This is where accident benefit costs have been increasing well beyond other areas of the province,” he said. “Hopefully… (when) reforms come into place (we will) start to see some cost decreases, although that is still a bit of question mark.”

The GTA’s average costs for claims in minor injury were almost 4 times of Ottawa’s in the year 2008.

The TD general officials weren’t available to portray their comments on the sudden increase which might have been the reformed package of the government’s less confidence.

The onlookers smell suspicions on an insurer as 2% of the drivers in Ontario had gotten approval. Time was given till Thursday for the insurers who had to file applications of the rates that were declared on the 2nd of March. Companies like Scottish Insurance co increased their rates by 20% only last month while most companies increased it sooner.

355 dollars will be paid by the auto policies of Ontario for the treatment of minor injuries and also the assessment of injuries starting on the 1st of September. Injuries like mild neck pains wouldn’t be encouraged for such benefits.