News released from MPP David Orazietti…

Bill Debated in Ontario Legislature Aims to Create Fairer Prices for Safe Drivers

Queen’s Park- Today, David Orazietti, MPP for Sault Ste. Marie, spoke in the Ontario Legislature to express his support for Bill 71, the New Drivers’ Insurance Rate Reduction Act, a private member’s bill introduced by Mario Sergio, MPP for York West that aims to create a level playing field for new drivers who satisfy driver education requirements and maintain a safe driving record.

“Bill 71 would lower the insurance premiums paid by new drivers across the province, making auto insurance rates more affordable for drivers and families across Ontario,” said Orazietti. “In addition, our government is actively pursuing further measures to lower auto insurance rates for Ontario’s nine million drivers by working to tackle fraud and reduce the abuse of accident benefits and excessive assessment costs.”

Currently, young and new drivers in Ontario pay substantially more in auto insurance premiums than drivers over the age of twenty-five, even when they are accident free and have demonstrated a clean driving record. Bill 71, New Drivers’ Insurance Rate Reduction Act, would create a new risk classification system that would be used determine fairer rates for new drivers who maintain a safe driving record. The changes would enable new drivers with good driving records to be granted additional years of driving experience, giving new drivers the opportunity to pay rates comparable to those paid by other drivers with clean records. In order to be eligible, new drivers would first have to complete a driver’s education course that is approved by the Ministry of Transportation.

Measures that have already been implemented by the province to improve the auto insurance industry are showing positive results. Since 2004, auto insurance rates have risen at a slower pace than inflation and, more recent changes that include the creation of the Auto Insurance Anti-Fraud Task Force, have resulted in a decrease of 0.18 per cent in rates in the first quarter of 2012. These trends are encouraging given that under the former PC government auto insurance rates jumped 44.9 per cent.

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