The Insurance Bureau of Canada (IBC) has done some investigating and will release an informative broadcast Sunday September 2nd on OMNI TV to explain to Ontarians what is causing car insurance to remain stubbornly high. Calling their program THE PRICE IS WRONG it will showcase how IBC workers travelled across the province asking Ontarians their opinions on insurance rates and to recommend ideas for bringing them down. IBC Ontario vice president Ralph Palumbo says this formed the backbone of the broadcast and hopes it will help explain to Ontarians how car insurance policies work and offer insight on why too much money is paid for coverage.
As the investigation will reveal one of the main reasons for these high rates has to do with organized crime. Criminal rings will often stage collisions to commit fraud and drive everyone’s insurance up as a result; for example an unexplainable minor fender bender ended up costing the insurance system $129,000. Odds are, there were legal investigation costs thrown into that amount but regardless that is a ridiculous sum of money spent on one front end.
IBC Director of Media Relations Steve Kee basically confirms this is part of the problem. He says that insurance rates are set based largely on the costs of claims in court that end up rising sky high when fraud is involved. This abuse of the system punishes everyone else who pays to keep themselves covered and out of jail for driving an uninsured car; basically like with many elements of the criminal empire, it is extortion.
Kee says that until these costs are put under control, Ontarians will continue to be overpaying to keep their cars legally on the road. Pressure may begin to mount on both the OPP and insurance providers to put an end to this type of fraud after Sunday’s program airs. Until change occurs IBC will continue touring Ontario regions to gather more ideas from citizens that can help put an end to fraud and fix the broken insurance system.