In brief: Ontario drivers pay significantly more for auto coverage due to accident injury claims being higher.
The full story
Auditor General Jim McCarter reported that auto insurance fraud is costing the industry about $1.3 billion a year in Ontario and that the province does not have significant fraud control measures.
Despite the number of people being killed or injured in auto accidents dropping by 25% in a decade and a 12% rate of return for auto insurers, despite bonds being only 2-3%.
McCarter thinks the rate should be adjusted again, lowering it for Ontarians.
Summing up
Total cost of injury claims rose 150% from 2005 to 2010, however, so convincing the government to change the rate may not be as cut and dried.
Photo credits: Stock
