2003-04 auto reforms result in Cdn$7 billion of savings

Consumers have enjoyed nearly Cdn$7 billion of auto insurance premium savings since insurance reforms were implemented in 2003 and 2004 in Ontario, Alberta, and Atlantic Canada, according to the Insurance Bureau of Canada.

IBC made its observations in a press release following an analysis of the latest data available from the General Insurance Statistical Agency (GISA), a government body that collects data on premiums recorded for every private passenger vehicle in those regions of the country.

“These benefits are the direct result of efforts by auto insurers and governments across the country to design and implement auto insurance reforms focused on the best interests of consumers.” said Stan Griffin, IBC’s president and CEO.

The IBC notes the average auto insurance premium in Ontario decreased from approximately Cdn$1,499 per vehicle in November 2003 to Cdn$1,260 in June of 2007 — a reduction of nearly 16%. “For Ontario drivers, it means an aggregate savings of [Cdn]$4.5 billion,” says Mark Yakabuski, vice-president, federal affairs and Ontario, and incoming president of the IBC.

In Alberta, Canada’s second-largest private auto insurance market, reform efforts have provided savings for consumers of Cdn$1.13 billion.

Alberta auto premiums in 2004 peaked at an average of Cdn$1,182, whereas now the average level is Cdn$1,021, a decline of nearly 14%. Total savings available to consumers in Atlantic Canada amounted to Cdn$1.17 billion.