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Ontario Drivers Pay Second Highest Car Insurance Rates In Canada: Study

By Bucklys     Feb 18, 2007 in Travel
You can't drive without it. You can't always afford it. And now a new study shows you why. Research by the Fraser Institute indicates Ontario drivers pay one of the highest amounts for auto insurance in the country.
The average motorist in this province shells out almost $1,350 a year for their protection policy. Only B.C. is higher. Motorists there pay just over $1,400 annually.
Prince Edward Islanders come off the best. They only fork out an average of $825 a year for coverage.
The study is actually supposed to show the failure of government run insurance programs, which exist in British Columbia, Saskatchewan, Manitoba and Quebec.
The numbers indicate drivers pay more in provinces where the government has tight control over rates, and they were the only places where prices actually increased between 2004-2005.
The Institute used a variety of calculating measures to arrive at its conclusions, since rates are set on different criteria in each place. It finds that government run programs often force motorists to pay for coverage they really don't want or need and suggests a deregulated system would alleviate the problem.
Which brings us back to Ontario, which has a free market system. Why are we paying so much?
Population is one explanation. More people mean more drivers, more accidents and more cars that can be stolen, all of which can cause rates to soar.
Your driving record - including tickets and previous accidents - is another factor. So is your age, the age of your car and how much time you spend behind the wheel.
And the insurance companies have long blamed escalating fraud for upping the antes.
Some also suggest our no-fault system can drive up premiums.
And while many motorists are convinced it's simple greed at work, insurance companies here insist their costs have skyrocketed in recent years, which gets reflected in the rates.
The Liberals moved to reduce soaring insurance costs back in 2004, announcing the average driver would get a 10 percent reduction. Yet we still shell out one of the highest amounts.
British Columbia: $1,404
Ontario: $1,347
Saskatchewan: $1,197
Manitoba: $1,152
New Brunswick: $1,044
Alberta: $1,036
Quebec: $988
Newfoundland: $947
Nova Scotia: $871
Prince Edward Island; $825
This is getting ridiculous how am I supposed to be able the drive a car when i get my license. This is so stupid bloddy scam if you ask me.
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