SIMCOE – Haldimand-Norfolk MPP Toby Barrett called for a more cautious approach on automobile insurance rates.
NDP Leader Andrea Horwarth made headlines earlier this week, calling for a 15 per cent reduction in automobile insurance rates as a bargaining chip with the Liberals. While Barrett wasn’t against a reduction in rates, he was more cautious saying Horwarth didn’t outline how a reduction in rates can be achieved.
Barrett pointed to the three key factors driving up auto insurance rates – fraud, excessive government red tape regarding rate regulation, and the 36,000 backlog in mediation reform.
“Saying you will lower rates without addressing the structural problems is nothing more than an empty promise,” Barrett said. “We can’t forget the Liberals promised a 10 per cent reduction within 90 days of being elected in 2003 and a further 10 per cent reduction over time. Instead insurance premiums have increased 65 per cent in the past 10 years. This type of approach doesn’t work.”
The Official Opposition is conducting consultations to provide structural reforms that will not just lower premiums today but keep them stable well into the future.
“We will offer reforms in the near future to deliver premium savings through more competition and encouraging innovation on new premium saving insurance products,” Barrett said. “We will reduce the contentious nature of the claims process that drives up costs that get passed on to consumers.”
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For more information contact:
MPP Toby Barrett 1-800-903-8629 or 519-428-0446