The government said rates have fallen about six per cent since it first introduced the bill, which is aimed at tackling fraud to lower costs for insurance companies and "is expected to help lower insurance rates" for Ontario drivers.
"We want to make sure people with clean records get the benefit of the cost reductions that are going to be imposed now by this piece of legislation," said Finance Minister Charles Sousa. "And they should be seeing, on average, a rate reduction of 15 per cent because that's what we're trying to fight for."
Sousa said 21 of the 120 auto insurance companies in Ontario have already lowered their premiums an average of 10 per cent in just over a year.
NDP voted against legislation
The New Democrats forced the then-minority Liberal government to agree to legislate a 15-per-cent cut in car insurance premiums over two years in exchange for allowing the 2013 budget to pass.But the NDP voted against the insurance bill Thursday, insisting it was a bad deal for motorists because it takes away their right to sue if accident benefits are denied.
"Removing more protections for people is not the right way to go," said NDP critic Jagmeet Singh. "It's a significant loss of our rights, and this is not a good bill."
MPPs
are voting Thursday on the third and final reading of a bill that is
aimed at reducing the cost of auto insurance for consumers. (Geoff
Nixon/CBC)
"These benefit reductions are ongoing, not a one-time thing, and are going to continue forever," said Singh. "So the insurance industry has more than enough profits, more than enough room to provide the 15 per cent reduction."
The Progressive Conservatives supported the legislation, but doubted the Liberals would be able to achieve 15-per-cent cuts in premiums by next August after they failed to meet the eight-per-cent reduction goal set for this past year.
"They're not on target, and admitted today they are at six per cent," said PC finance critic Vic Fedeli. "Much like missing their revenue targets, they've already missed this insurance rate-reduction target, but it is a step forward and that's why we voted in favour of it."
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Source: http://www.cbc.ca/news/canada/toronto/auto-insurance-bill-passes-in-ontario-legislature-1.2841928
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