Insurance cos told to give drivers a break

The Ontario government says it wants to see an eight per cent cut in auto insurance premiums by next August, and 15 per cent within two years.

Finance minister Charles Sousa says they have targeted the underlying issues to lower costs. “What we’ve done, of course, is not just take action against fraud but also other practices within the system to reduce those costs.”

“The cost of claims in Ontario is literally 10 times more than other provinces. There is an underlying problem that we must address, and that’s what we’ve been doing for the last two years.”

The NDP had demanded the insurance cuts in exchange for supporting the minority government’s budget. Officials predict the rate cuts could save the average driver $200 a year.