Report Released on Auto Insurance Premiums in Ontario
On March 30, 2015, Dr. Fred Lazar and Dr. Eli Prisman of the Schulich School of Business at York University released their report on auto insurance profits in Ontario entitled Returns on Equity for Automobile Insurance Companies in Ontario.
The study shows that in 2013 the average family should have paid around $100 to $120 less for car insurance.
Although the auto insurance industry, as a whole, reported weak profits, the study shows that individual companies earned significantly more than the 11% return on equity, the maximum allowed by the Ontario government.
Meanwhile, accident benefits are repeatedly cut by the government. The most significant change in recent history was in 2010 when the Statutory Accident Benefits Schedule (“SABS”) was significantly modified to cut benefits to victims of car accidents.
The report by Lazar and Prisman further notes that in 2013 Ontario drivers paid about $840 million too much for car insurance.
Steve Rastin, preside of the Ontario Trial Lawyers Association (“OTLA”), is quoted as saying:
“It is now up to the government to do the right thing and implement an immediate, orderly reduction in the profit cap and ensure that savings are passed along to consumers.”
“We must also ensure that coverage is not cut further for the thousands of injured car accident victims in Ontario.”
If you’ve been injured in a car accident or would like to find out more about maximizing the benefits available to you, contact a reliable and experienced personal injury lawyer.