Last week the Ontario Government tabled the provincial budget, and included a number of measures aimed at reducing auto insurance premiums. These changes will continue to move towards the Government’s goal of a 15% reduction in the price car insurance.
Companies will now be required to offer motorists a discount for having snow tires on their vehicle. Evidence from Quebec, where winter tires are mandatory, suggests that using winter tires can result in an 18% drop in collisions. Many Companies, like Aviva, already offer a discount for having winter tires.
Another measure that was announced was that companies will no longer be able to increase premiums for minor at-fault accidents in certain situations. There were also a number of changes related to accident benefits.
While there are not details yet on when these changes will be phased in. Companies that do not currently offer a winter driving discount will need time adjust their rates and file the changes with the Financial Services Commission of Ontario (FSCO). FSCO is Ontario’s regulating body for insurance and will be responsible for overseeing the implementation of these changes.