Liberals will vote for NDP motion to cut auto insurance premiums 15%

TORONTO – Members of Ontario’s Liberal government will vote for an NDP motion calling for a 15 per cent cut in auto insurance premiums, but don’t bank on big savings just yet.

The motion, which is not binding on the government, calls on the Liberals to mandate a gradual, industry-wide reduction of 15 per cent in auto insurance rates.

The New Democrats want the government to order the premium cut because of big savings insurers realized after the province altered coverage rules in 2010.

The NDP complain premiums went up in 2011 even though industry payouts for accident claims dropped by up to 50 per cent after the regulatory changes.

The Liberals have maintained the best way to reduce insurance premiums is to combat fraud, the same position taken by the Insurance Bureau of Canada.

The move by the Liberals to vote for the motion shows the minority government is willing to meet demands the NDP has made to support the upcoming budget and avoid triggering a provincial election.