Ontario drivers may soon see the end of “unfair” insurance policies with premiums based on zip codes, Premier Doug Ford said Thursday.
Ford’s government has recently implemented policies that are favorable to drivers, canceling license plate renewal fees, removing some tolls from highways and reducing the gasoline tax.
But there’s another common complaint the government seems poised to tackle – discrimination by zip code, and many drivers are upset that their premiums can go up depending on where they live, even if they have a clean driving record with no accidents or tickets .
At a news conference Thursday, Premier Doug Ford appeared ready to address the issue, calling insurance premiums based on where you live “unfair” and saying they may be coming to an end.
“I know we’re working on a plan for the insurance companies, as far as I’m concerned, it’s completely unfair to the people of Brampton, Scarborough, they’re going after these people based on their zip code,” he told a news conference.
“This will be over very quickly. They should treat people fairly.”
Matt Hands, director of insurance at RateHub, an insurance comparison website, told CTV News Toronto that “it doesn’t make sense for someone with a clean driving record to pay more because they live in a certain area.”
He said changing the insurance system will take time, and he believes if people who pay higher rates get a reduction in insurance, other drivers may see their rates go up.
“They’re going to have to spread the risk, so that could mean people who were paying a lower rate, say in London or Ottawa, could see an increase to offset the reductions in the other areas because the insurance is linked entirely with risk balancing,” he said.
In the provincial budget released in April, the Ford government also said it plans to crack down on insurance fraud, create more choices for consumers and improve fairness in the system.
Although the prime minister has said that insurance reform is coming, there is no timetable for when it might happen. Still, after years of talking about it, major changes could be coming to the province’s insurance system.
Add Comment