Does Ontario Need Auto Insurance Reform? Day 43 of my Nightmare with Economical Car Insurance. No Answers from CEO Karen Gavan

dead mercCFN – The NDP Motion to reduce car insurance rates by 15% in Ontario passed recently; but is that really enough or just a token gesture by politicians feeling the wrath of consumers and drivers in Ontario?

There are major issues with the auto insurance industry in Ontario.   Being able to move economically from company to company – how cases are resolved speaking of which it’s now Day 43 and counting.

We now have to go to court because Economical Insurance has dug it’s heels in.   The did up their last offer, when they requested we don’t go to court, by about 8%   So off to court we go.   

The bigger question is that is this situation an anomaly or do big insurance companies with the help of actuaries simply have this formulated out so that 90% of claims get paid out at reduced values and the few the can wait it out get paid while the insurance companies fight it kicking and screaming?

CEO Karen Gavan still has not responded to our emails either.

And of course what happens to clients after the ordeal can also be mystifying.   I called another broker and they said because of my claim and in spite of it being the first in over 30 years of driving, my rates would be tripled if I moved to their company; at least for the first few years.   So essentially consumers are locked where they are and are at the mercy of the very company that just beat them up.

Sounds like Ontario does need auto insurance reform and as nice as it was for the NDP to push for the 15% reduction we need more.

What do you think Ontario, you can post your comments below.

Cornwall Free News


  1. I agree 100% Jamie. Government auto Insurance in British Columbia is consumer friendly and doesn’t act like a monopoly even though it is. In Ontario the insurance lobby wields a big stick and if you have to stand up for your rights you can expect to get bloodied. Kudos for standing your ground!

  2. The insurance companies in ontario is very to high then any other regin on the earth they are suking the blood from veins from public and no budy is taking initiative action for this hedden robbers here is my question is there should be some law for this to stop this crime what i mean to say some privileged authority whho can take care if it is going through like this long then then ontario public gona stand up and they gona do same thing for insurance companies they not gona take any insurance.Before this heppen DO SOME THING there is about 10,200,000 people wating for this
    thanks for under stand us

  3. Thanks to NDP to get a cut of 15% in the insurance rates, but that is just not enough. In large scale it looks big because 15% on each policy shows a huge amount of $$ to the government but how much is that helping an individual? Between $40 to $50 a month? Look at other side of the coin as well for example, say we have an at fault accident & to get a good rate we have to wait for 6 years for that accident not to be rated any more & 6 years is a very long time even the are once in 4 years so why not those 6 years of at fault accident changed to 3 years, at least the common man will have some sign of relief. And for different areas its different rates please give us a break there is hardly a difference of 5 km between each city like Whitby and Oshawa, then why are the rates different, some areas in Toronto are considered high risk, if its considered that high risk what is the government and the police there for why are they not able to control crime, it is just a gimmick to charge people more. If the government says some parts of GTA are high risk areas, then they are incapable of managing and we need a government we think about the benefits of people of Ontario.

  4. Author

    Sam it’s far deeper as my experience is showing me. Our vehicles for most people are the largest expenditure in our lives after our homes. Whether owning or leasing how many people can afford to be without a vehicle or can replace one “before” an insurance settlement?

    Right now the system seems rigged for consumers being stuck with low ball offers on their vehicles. If not then they have to wait for the court system which also has risk and expense.

    That’s just wrong.

  5. When we resell our car to someone, they need to remit Ontario tax based on a black book (or such) value. Should the insurance companies who take good money, not have a fixed value (but with some wiggle room for condition) not be in place?

  6. I partially agree with Sam as well as admin, the main point is why are people forced to pay more based on the area, for example Scarborough finishes on Steeles and Markham starts just because of 100 meters there is a sky high rate difference. How good and efficient is the public transport other than TTC. Why do we have to wait for 6 long years for an at fault accident not to be rated on our policy, where as in the USA its 3 years. Why can’t we buy the claim back from the insurance to get that accident off our record, in other provinces its possible then why not Ontario. Check this website

    There is a lot more, the Govt. is only thinking about their profits. If the Govt. is for the people then they have to do something about it.

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