Two separate bills have been established that aim to prevent auto insurance companies in Ontario from setting insurance premiums based on drivers’ addresses.
Both bills were introduced on Monday, The Canadian Press reported.
The first is a private member’s bill introduced by Tory legislator Parm Gill of Milton, Ontario, which looks to address the province’s “discriminatory” pricing scheme. According to Gill, drivers from communities around Toronto pay higher auto insurance rates than those living elsewhere.
“Ontario’s auto insurance rates are amongst the highest in Canada despite having some of the lowest levels of accidents and fatalities,” Gill said. “Our government is committed to ensuring fairness in rate setting and ending discriminatory practices.”
Gill explained that his bill, once passed, would ensure that drivers are evaluated based on their driving record and not where they live.
“This bill, if passed, will promote personal responsibility,” the lawmaker said, adding that a good driver in his area of Milton should be paying the same rates as a good driver anywhere else.
Another similar bill was also introduced this week, by NDP legislator Gurratan Singh. The bill requires the Financial Services Commission of Ontario to refuse approval for risk classification systems that do not count the Greater Toronto Area as a single geographic location.
“Drivers in the Peel region and other parts of the GTA continue to arbitrarily pay significantly higher auto insurance rates than anywhere else in the province,” Singh said.
According to Singh, drivers in Brampton pay $1,000 more per year on average in auto insurance premiums, compared to drivers in north Toronto.
“It will make sure that insurance companies are not allowed to gouge people simply based on the neighbourhood they live in or the municipality that they live in,” the MPP said.
In a separate statement, the Insurance Bureau of Canada (IBC) said that it would review Gill’s bill.
“Ontario’s drivers look forward to an improved regulatory environment. Ontario auto insurers are actively seeking modernized regulation that enables them to meet the needs of Ontario drivers. We are committed to working with government to fix auto insurance in this province,” said IBC vice-president of Ontario Kim Donaldson.
