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Orazietti Urges Northern MPP's To Vote Against Auto Insurance Bill

News Release for local2 sault ste. marie
June 6th, 2012 at 4:57pm

Tomorrow in the Provincial Legislature at Queen’s Park, Bill 45, the “Insurance Amendment Act (Risk Classification Systems for Automobile Insurance), 2012,” will go to Second Reading, which will determine whether the proposed legislation will move one step closer to becoming law. Bill 45, which was introduced by Jagmeet Sing, an NDP MPP who represents the riding of Bramalea-Gore-Malton just outside Toronto, would result in reduced auto insurance rates for drivers in the Greater Toronto Area (GTA) at the expense of drivers in Northern Ontario – drivers in Sault Ste. Marie should expect an increase of 30 percent if this flawed NDP legislation passes.

auto insurance headline

“I strongly believe in making life more affordable for northerners, which is why I have opposed this misguided piece of legislation from the beginning and I will be speaking in the legislature tomorrow to express my opposition to this bill and the negative impact it will have on northerners and their pocketbooks,” said David Orazietti, MPP. “I hope that the members of the provincial NDP who have been supporting this poorly drafted piece of legislation will do the right thing and vote against Bill 45 tomorrow.”

In an effort to reduce rates for Toronto drivers, Bill 45 would remove geographical location as a factor in determining auto insurance rates, which would result in certain increases in other parts of Ontario – particularly in the North but also in rural areas. In addition to increasing auto insurance rates in Northern Ontario, Bill 45 has a number of other very serious consequences. For example, the legislation limits the definition of “driving safety record” to actual accidents, which would mean that if a driver were caught drunk driving or street racing but did not get into an accident, their premium would not be affected. Mother’s Against Drunk Driving (MADD Canada) publicly opposes Bill 45:

“[The NDP] bill will force responsible drivers to subsidize the insurance premiums of dangerous drivers. … In our view, the bill sends all the wrong messages, punishes responsible drivers, rewards dangerous drivers, and will increase the risk to Ontario road-users.”

– Andrew W. Murie, CEO, MADD Canada

Further, Bill 45 does not take into account the make, model and year of the car so drivers with less expensive vehicles will end up covering the premiums of those with luxury vehicles and sports cars. Experts who have commented on Bill 45 agree that it is poor public policy:

"The cost of implementing a new, unproven rating system will increase the premiums of all drivers."

– J.S. Cheng Partners, Expert Report, April 12, 2012

“The rates for people in other parts of the province [outside of Toronto] would rise dramatically.”

– Philip Howell, CEO, Financial Services Commission of Ontario

Testimony to the provincial Standing Committee on General Government, May 28, 2012

“[The NDP bill] would have a negative impact on premiums outside of the GTA.”

– Bryan Yetman, Insurance Brokers Association of Ontario,

Testimony to Committee on General Government, May 30, 2012


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