In a recent study conducted by the Federal Auditor General regarding the finances of each province, it was discovered that one province charges the most for Auto Insurance. With the average motor vehicle claim rounding out to $56,000 the charges for that province are five times as much as the next province. With the economy slowly rebounding from the economic recession of 2008, it seems crazy, that the Ontario Government would make adjustments, benefiting the Insurance Industry, rather then the citizens. Today we’ll examine why Ontario charges the most for auto insurance.

In Auditor General Jim McCarter’s assessment of the high rates for Auto Insurance, in his 2011 report, he indicated, that the Government needs to look out for the best interests of its citizens. Since 2002, the Ontario Liberal Government has placed itself in an intriguing situation regarding Auto Insurance. Essentially, on the surface, it appears as though the Government is making the adjustments needed for lower insurance rates. However, in reality, the Government is just as much to blame for high insurance rates as the companies are. For example, in 2002, the Liberals decreased the value of auto insurance claims from $200,000 to $100,000 in an effort to help the auto insurance industry, which claimed that despite grossing two billion dollars a year, they were losing money.

Then in 2010, even though the average auto insurance company was still grossing roughly eight billion dollars a year, they once again argued they were losing money. As a result, the Liberals decreased the value of an auto accident claim, from $100,000 maximum to $56,000 in an effort to protect the insurance industry. Nevertheless, the insurance rates are still incredibly high, as only the Auto Insurance industry, appears to be making any profit from the Government changes. But why is it, that the Auto Insurance industry can have five times the higher rates of the next province to Ontario?

One of the biggest dilemma’s facing the Auto Insurance Industry is fraud. In the same study, conducted by the Auditor General, it was revealed, that from 2005 to 2010 when the claims amount was dropped a second time, the total cost of claims rose 150 percent. Aside from the number being incredibly high, what doesn’t make much sense is that in the same five-year time frame, the injury rate only rose 30 percent. What should be noted is that in Ontario there is no set rules of conduct to show insurance companies how to combat fraudsters. Perhaps more importantly, why isn’t the insurance industry studying how to protect its consumers instead of using the government to take advantage of the situation.

In other words, while the insurance industry gross’s $11 billion a year thanks to Liberals, the rates of Ontario Insurance Claims and the premiums that follow them are much higher, because the governing body is uncertain how to properly govern. Until the Ontario Government sets out clear guidelines, to address the issues, then the rates will continue to be higher there.

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Searching for the best personal injury lawyer Toronto legal team? Then be sure to visit Personal Injury Lawyers in Toronto and find out how these expert injury and car accident lawyers will fight to make sure your claim is what you are fully entitled too.
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Author Bio: Searching for the best personal injury lawyers Toronto legal team? Then be sure to visit Personal Injury Lawyers in Toronto and find out how these expert brain injury lawyer Toronto and car accident lawyers will fight to make sure your claim is significant and what you are fully entitled too.

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