December 2nd, 2022

Auditor General report confirms some drivers pay more based on where they live, not how they drive

Ontario drivers pay the highest rates in the country despite having a lower rate of injuries than most provinces

QUEEN’S PARK – NDP Auto Insurance critic Tom Rakocevic (Humber River-Black Creek) is once again calling on the Ford government to end the harmful practice of auto insurance postal code discrimination after the Auditor General’s 2022 report confirmed what New Democrats have been saying for years – that Ontario drivers pay far more simply based on their address.

“Drivers with clean driving records in many GTA neighbourhoods like mine pay significantly higher auto insurance rates than others in the GTA – for no other reason than because of where they live,” said Rakocevic.

The report also revealed that Ontarians pay the highest auto insurance rates in the country despite having fewer injuries than most provinces. Not only that, but while accidents have been down since the pandemic, premiums have continued to climb at double the rate of inflation.

Rakocevic re-tabled the NDP private members’ bill to end auto insurance postal code discrimination in August 2022 for the third time with co-sponsors MPP Doly Begum and MPP Marit Stiles. Earlier this year, the bill received unanimous support at second reading, but the government did not pass it into law.

"If this government was serious about tackling high auto insurance rates, they would have already passed my bill to end postal code discrimination instead of letting auto insurers keep gouging people," said Rakocevic.

"Ontario drivers are overpaying on their premiums while insurance companies rake in massive profits. Ending postal insurance discrimination is long overdue. I am urging the government to take action and pass this bill into law immediately.”