CAA Ontario applies to regulator for auto insurance rate reduction

CAA Insurance Company (Ontario) has applied for a rate reduction with the province’s regulator, less than a week after the government announced its intention to hit an average rate reduction of 15% within two years.

“CAA fully supports this new (government) strategy, which targets a 15 per cent auto insurance decrease over the next two years for many Ontarians,” the company said in a statement Thursday.

“These savings will be made possible through a number of proposed cost saving measures including a continued attempt to limit the amount of insurance fraud and the introduction of new technology like telematics.”

CAA added that it hopes to work with the government to regulate costs associated with the towing industry.

Earlier this week, the Co-Operators also announced it was lowering rates for its auto insurance customers in the province.