| Mike's Comments |
Oct 5, 2009The problem of uninsured drivers: In all the discussion regarding auto insurance reform in Ontario, I hear very little about the problem of uninsured drivers. Estimates of the number of uninsured drivers in Ontario vary widely, but one article I recently reviewed indicated that in 2005 the number was estimated at 400,000 by the Insurance Bureau of Canada. Another article from the same year indicated an average Automobile Insurance premium in Ontario of $2,383. Basic math indicates that if all those 400,000 people were forced to buy a policy, an additional $953,200,000 would be added to the 'pool of funds' available to Automobile Insurers to pay claims EVERY YEAR. Eventually, this would also allow for a REDUCTION in premiums. Based on personal experience, I believe the above number of uninsured drivers is a very conservative estimate. The inescapable conclusion of this is that those of us who are responsible, and paying our premiums, are subsidizing those who don't. To add insult to injury, if you are involved in a collision with an uninsured driver, THEY CAN CLAIM FOR ACCIDENT BENEFITS UNDER YOUR POLICY. What can you do about it? Contact your local Member of Provincial Parliament - the Province is responsible for the regulation of Automobile Insurance. You can also voice your opinion to the Insurance Bureau of Canada. There was an initiative begun many years ago to deal with this problem - the 'Uninsured Vehicles' project. It is currently stalled in it's implementation and there needs to be a push to get this done. If someone is not willing to pay into the system, they should not be driving and you and I should not be subsidizing them! Michael Stuart, BBA, FCIP, CRM, CAIB Grant, Jones & Stuart Insurance Brokers |