Auto insurance: When Ontarians feel suffocated by the cost of their premium

The impact on the finances of motorists like Jacques Ngassam is considerable. The Scarborough resident has held a G license since 2011.

Frankly, if the insurance ever takes me $600 [par mois], I don’t know how I can survive. Even if you had to work, when you see that you have a minimum wage of $15 [de l’heure] when we calculate, how much does it make per month?he asks himself.

” I went back to school to be a teacher in primary or secondary schools. As a mature student, it takes a big dent in my monthly income. With the four children I have at home, I can no longer make ends meet. »

The cost of auto insurance premiums has been rising for years in Ontario. Residents continue to complain about it.

A pile of bills

Jacques Ngassam says he had been paying a monthly auto insurance premium of $280 for over 5 years. But an accident, which he describes as light last winter had a significant impact on his premium, which rose to over $600.

The situation is such that he considered parting with his vehicle. He can’t bring himself to do it right now.

I’m working in the afternoons coaching children’s soccer, I tell myself that [garder la voiture] worth it because going on public transport with balloons, cones is a bit more difficult for mehe says.

” And then, if I give up, there are a lot of children who need me. So I think it’s worth the sacrifice. […] If it hadn’t been for this obligation towards the children, I was going to drop the car. »

For his part, Blaise Fodjo, a resident of Etobicoke, has been paying $360 in car insurance premiums per month while driving in Canada since 2014.

This insurance premium seems to him all the more problematic as it is added, he explains, to other expenses.

If you have to pay for car insurance, $360 is huge. That’s not counting the other expenses: you have to insure the house, it’s around $120, you take out life insurance which is around $100he is offended.

” If you go and get the water bills, the electricity bills, the gas bills, the mortgage, it’s huge. These are suffocating bills. »

Mr. Fodjo says he is frustrated when he compares this amount to the $60 a month he paid for his auto insurance when he lived in Quebec just a few years ago.

In fact, according to data compiled by the Groupement des assureurs automobiles and the Insurance Bureau of Canada, in 2020, Quebec was the Canadian province with the lowest average annual cost ($857). Ontario had the same highest cost average at $1,655.

Everyone’s Business

Criticisms about car insurance prices in Ontario are also being heard in the northern part of the province.

Audrey De Bruyne lives in Thunder Bay. Arrived from France in 2012 and then holder of a driver’s license for 17 years, she has been driving in Northern Ontario for almost 10 years.

Despite this long driving experience accident-freeshe says she feels her car insurance is increasing over the years.

The argument is that it increases with inflation. I don’t find that very fair. I haven’t had an accident, I’m a good driver, it should decrease. But on the contrary, my insurance costs me a little more each yearshe shares.

” You have to be careful when looking for a new car. We tend to buy used cars. If you want a certain type of model, it’s complicated and then a little nervous. »

For Ms. De Bruyne, the consequences of a high insurance premium were particularly felt when it was necessary to look for a new vehicle.

We also had to keep in mind how much it was going to cost us in terms of insurance. The family has grown too. So next purchase, of course you have to take into account the size of the car, the model, the age, so that the insurance is not exorbitant.she says.

What solutions?

To respond to the concerns of Ontarians, Radio-Canada contacted the four major parties in Ontario: the Progressive Conservative Party, the New Democratic Party, the Liberal Party and the Green Party.

Only the New Democratic Party responded to our requests through Lisa Gretzky, MPP for Windsor West.

Ms. Gretzky says the NDP, if it were to form the next government, would take action to end what she sees as a form of injustice.

Across the province, there is discrimination based on postal codes. So depending on the city you live in, or the zip code within the city you live in, insurance premiums differ. We are committed to banishing discrimination based on postal codesshe explains.

” We are also committed to exploring all possible avenues to lower insurance prices, improve service quality, enforce transparency and ensure that the Financial Services Regulatory Authority of Ontario puts drivers first. »

If she does not set a precise deadline and does not explain exactly what mechanisms will be put in place to make car insurance more affordable, Lisa Gretzky nevertheless affirms that a New Democrat government would start working on this issue immediately after the election, flaying in the process the inaction of previous governments.

The current Conservative government talks about car insurance occasionally, but has done nothing concrete to keep the cost of insurance premiums under control, in fact they continue to rise. The same could be said of the previous Liberal government. […] The Liberals had 15 years to do somethingshe says.

In its most recent budget, the Progressive Conservative government indicates that it will change the rules for auto insurance.

The document outlines a plan that the province says will give drivers more choice and ensure insurance fairness, while tackling fraud.

Drivers will be able to better tailor their insurance to their needs and purchase coverage based on vehicle use, according to the government, which does not give further details.

With information from The Canadian Press