Ontario's governing Liberals are introducing legislation today that they say will help reduce auto insurance rates, even though they're not mandating a cut to premiums.
Finance Minister Charles Sousa says rates have dropped five per cent on average across Ontario and will fall further to the 15 per cent target if the bill passes.
He says the legislation will combat fraud, make it easier to settle disputes and curb costs.
Sousa says the dispute resolution system for injured drivers would be moved to an existing tribunal run by the Attorney General's ministry.
Only licensed health service providers would be able to get paid directly by insurers.
Critics point out Ontario made regulatory changes in 2010 that greatly reduced costs for the insurance industry, but those savings have not been passed along to drivers.
Progressive Conservative Jeff Yurek says the big discounts on premiums are coming from companies that insure bad drivers, while good drivers are seeing their rates go up.
That's because Sousa told insurers to lower their rates on average, he said. So they're inflating that average by reducing premiums for bad drivers who are paying more for insurance anyway.
Good drivers are paying the price while the minority Liberals placate the New Democrats to stay in power, he said.
"The NDP and the Liberals have given an extra discount to the bad drivers, and the good drivers -- what I'm hearing from my office -- their rates are still going up," Yurek said.
