Wynne says reducing auto insurance fraud is the way to cutting rates for drivers

TORONTO – Premier-designate Kathleen Wynne says she’s more interested in tackling fraud in the auto insurance system than an NDP call for a 15 per cent cut in premiums.

NDP Leader Andrea Horwath says regulation changes in 2010 cut benefits for motorists and reduced statutory accident payouts from insurers by almost $2 billion — or 50 per cent — but premiums still went up.

Horwath wants the government to mandate a cut in auto insurance rates, and Wynne says it’s one of the ideas she will discuss with the New Democrats.

However, the premier-designate says she is more focused on a task force that recommended ways to combat insurance fraud, which she notes will save the industry money.

During a conference call with ethnic media today, Wynne said she’ll work with insurance companies to make sure some of the savings from implementing the anti-fraud recommendations are passed along to consumers.

The Insurance Bureau of Canada says fraud costs Ontario drivers about $1.6 billion a year, and like Wynne wants the government to implement the recommendations of the task force.

The NDP calculated a 15 per cent reduction in premiums would save the average Ontario driver about $226 a year.

News from © The Canadian Press, . All rights reserved.
This material may not be published, broadcast, rewritten or redistributed.

Join the Conversation!

Want to share your thoughts, add context, or connect with others in your community?

The Canadian Press

The Canadian Press is Canada's trusted news source and leader in providing real-time, bilingual multimedia stories across print, broadcast and digital platforms.