Regarding the car insurance rates, the Ontario NDP party is urging the Ford government to support a new bill that is going to tackle postal code discrimination. Price adjustments across the GTA and in populated sectors of Ontario are consistent in many insurance providers. The goal of the bill is to eliminate the price gouging that happens in the GTA and ensure that every customer receives a fair rate, regardless of their postal code.
Third time being proposed to eliminate the postal code discrimination in car insurance
This is the third time that the NDP has proposed this bill with the last attempt in 2018. The previous attempt at the bill had it blocked by the PC party. The bill received a vote earlier in this year but legislature dissolved before it passed officially. Reintroducing the bill could ensure that families facing added costs with inflation could have some discounts coming for their insurance.
Even drivers in populated areas with clean driving records are continuing to face higher charges.
The party proposes a new system that would create rates based on the value of a vehicle and driving record alone.
The bill received a new reading last week and it is unclear if it will get a second passing.
There has been no word from the PC party on whether they will be supporting this bill but time will tell. Premier Doug Ford suggests that car insurance rates based on postal code should come to an end. He recognized it was unfair for the people of Brampton or Scarborough to pay higher than average rates and that people should be fairly treated across the board.
Providing fair options when purchasing insurance could be helpful for many Ontario families facing financial stress but the current proposal lacks specifics on when the bill may be passed or what the plan or insurance rates may be.
As this story progresses, we could soon see an end in sight for postal code discrimination in auto insurance rates.
Contact our car insurance agent to discuss and learn more.
