http://www.digitaljournal.com/article/280767

Ontario drivers could be seeing higher car insurance bill

Posted Oct 20, 2009 by KJ Mullins
Ontario Premier Dalton McGuinty has announced that the province will be addressing the raising cost of auto insurance. That promise may not help drivers who are seeing higher premiums this quarter.
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The Financial Services Commission of Ontario has allowed for rate changes for several insurance companies. Insurance fees could raise as high as 9.1 percent across Ontario with a heftier increase in Toronto. Toronto insurance premiums could skyrocket with a 14 percent increase.
The Toronto Star reports:
"The big cost driver in Ontario, and even more so in the Greater Toronto Area, is accident benefits costs," said Leonard Sharman of Co-operators General Insurance Co.
"Things like assessments, medical rehabilitation, physiotherapy costs, etc., have been increasing pretty dramatically, and this is most pronounced in the GTA."
Insurance companies are defending their need for higher fees stating that the costs for people injured in accidents are behind the increase.
One proposal to cap the increasing insurance fee is by limiting the amount accident victims can receive for treatment. McGuinty says that cap should be at $25,000 for minor injuries.
CBC reports:
"Minister [Dwight] Duncan will be bringing forward a new proposal, which is designed to ensure we continue to have the right kind of balance, and by that I mean adequate levels of protection for drivers and affordability at the same time," McGuinty said.
In 2008 the average premium per car in the Greater Toronto Area was $1,682, with an increase of 14 percent the cost will be averaging $1,917.
Some drivers can expect even higher rates. Pembridge Insurance Co. Ltd plans to increase their rates to 21 per cent in the GTA and 18 per cent elsewhere in Ontario.
Premier Dalton McGuinty claims that the rates are still less than what they were six years ago, according to CityTV.