Why GTA car insurance rates are so high (bad credit, brokers)

[kkgg7]

This is a good article explaining why the premium in GTA is so high - gaming and abuse of medical claim

Why GTA car insurance rates can give you whiplash | Wheels.ca

INSURERS SAY there is less abuse in the rest of the province. The 58-year-old man in the London collision returned to work in a few days.
He later saw a chiropractor who proposed – and was paid – $1,674 for treatment. Insurers could hardly quibble with that. It was within an approved and scientifically justified framework of early treatments for whiplash-associated disorders.
The case of the 59-year-old Toronto woman involved in the Econoline collision contrasts sharply with that of the London man.
She initially reporting a pain in the side, but later claimed to have blurred vision, back strain, headaches, nausea, rash, skin eruptions and severe stress adjustment.
Like many others in the Toronto area, including five of the case studies supplied to the Star, the woman consulted a legal adviser after her van was struck. She quit work for several weeks, not a recommended strategy for a rapid recovery.
She received $4,096 of income replacement, and sought $9,600 to pay for housekeeping and for help dressing, washing her hair and cutting her toenails. The chiropractor she saw proposed to spend nearly 117 hours and bill $22,158 to assess her injuries, home and workplace. Along with a psychologist, the chiropractor proposed $26,000 worth of treatments and assistive devices.

[Arob12]

I saw the news report on TV last night saying that rates would go up in GTA and I felt sick. I'm already squeezed

We need to band together to show the insurance giants that we wont take it, and the internet could be a good way of getting a constituency or a consumer block that could force change. Already there are companies like Kanetix that let you pick the best rates, and so that makes them compete for you and we need more of that here in Canada.

[ThroatGuzzler]

Because there's a car accident every 20 seconds on average in the metro.

[kkgg7]

Originally Posted by ThroatGuzzler

Because there's a car accident every 20 seconds on average in the metro.

So you think there are more car accidents in Toronto than in say, Los Angeles??

[ThroatGuzzler]

Originally Posted by kkgg7

So you think there are more car accidents in Toronto than in say, Los Angeles??

I'd say so, we have one of the busiest freeway systems in the world.

[dpylyp]

and I guess that since the insurance company's lost so heavily in the stock markets last year....
and this year they are incorporating the credit beacon scores into your insurance premium....

Good thing they play fair with everyone

David Pylyp

[benii]

Insurance is a sham...there's a reason why you get such a high commission when sell any kind of insurance. The insurance companies make so much money.

[dpylyp]

Originally Posted by benii

Insurance is a sham...there's a reason why you get such a high commission when sell any kind of insurance. The insurance companies make so much money.

Banks do not discount their rate of interest to "you by 25 to 50%"
Try asking the bank for that 20% off sale!

Insurance brokers earn 18% on New business and 12% on renewal.
You pay the billed amount monthly

New proposals include tieing your credit rating to your insurance premium as a way to increase rates to those with less than stellar credit.

[Malcolm Went]

Insurance, (aka credit) scoring on auto policies is illegal in Ontario. It is used on home policies which have discounts associated with the auto for carrying both lines together. However, if you have bad credit, there are carriers who do not use it. If your score is good however, you pay significantly less than any other carrier who does not use credit scores.

I'm an Insurance Agent in Newmarket just north of Toronto, and i can tell you that if your rates are being raised significantly, shop it around your renewal date. If you are with State Farm shop it whenever you please because there is no cancelation charge.
Every carrier has different claims experience they base their rates on. Toronto prices will be higher than the suburbs around it, but if you look around enough it can pay off. Check to make sure your company has updated all your information and applied every discount possible.