PC MPP Jeff Yurek rose in legislature Monday to question the Minister of Finance on his auto insurance premium reduction effort.
Yurek says the reduction is actually benefiting bad drivers. He says this is because, since it is illegal to deny drivers insurance, companies set up subsidiaries to deal with high risk drivers. These companies have higher premiums, and since the Financial ServicesCommission of Ontario has been given authority to direct insurers to lower premiums and they're a top priority.
Yurek adds that since the stated target of 15% represents a market-wide average, these non-standard insurers, as well as the bad drivers they insure, will have some of the largest reductins. He says the PC's have an auto insurance plan with four points, including reducing red tape and bureaucracy, reforming the dispute resolution process, implementing the recommendations of the Anti-Fraud Task Force, and increasing accountability for senior insurance executives.
Yurek says this means the good drivers are rewarded and the bad drivers are not penalized.