Ontario Premier Doug Ford's government will make auto insurance changes a central feature of the budget it tables on Tuesday, CBC News has learned.Auto insurance reforms will be presented in the Ontario budget on Tuesday, multiple sources have told CBC News. The sources say the changes will offer drivers more options for reducing their car insurance premiums.
The sources say the budget will not include any specific target for reducing average auto insurance premiums across the board. Instead, the measures will increase what the industry calls "optionality" for customers, allowing drivers more leeway to pick and choose their coverage plan, said one source.
He said offering drivers a wider range of options to reduce their premiums is great in theory, so long as they are given adequate information about the potential repercussions of less coverage. Another key factor in car insurance rates in Ontario is the registered owner's home address. There are significant differences in premiums for drivers with identical cars and identical driving history but who live in different places, what some have dubbed "postal code discrimination."