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Auto insurance rip offs

June 14, 2013   ·   0 Comments

Dear editor:

Last year I switched a considerable amount of insurance both house and automobiles to a well known financial institution from my insurer at the time to take advantage of lower rates offered to me by this new auto insurer.

Well you can imagine my surprise when I received my first renewal invoice to discover my new insurance company had increased my insurance premium by 20%!! I may as well have stuck with my previous insurer and will probably go back there if no resolve found!

I phoned to complain and advised their agent there has been no change in my insurance to justify such an increase, I was told by a young lady that there was nothing she could do about it, and “it was just a general increase across the board”! I told her this was not acceptable and she had her supervisor call me who basically gave me the same song and dance.

I was then escalated to an arbitrator, who advised he was very sorry but if I wanted to switch to another provider he would assist me as much as possible (the jest of our conversation). I have since recently heard the same line from other insurance companies, indicating this is a new industry wide policy statement designed to make us feel better as Ontario tax payers “getting the shaft” yet again, this time from our auto insurers! Is there no end to the escalating consumer rip offs in this province by government and other agencies?

It is now quite clear that the insurance industry has decided to fend off the looming, government, mandatory, 15%, auto insurance cost reduction, by heading it off at the pass and hitting us with this outlandish increase now. Recent media interviews with government officials have them stating “that the insurance companies must obtain government approval prior to any insurance general premium increase and no such approval has been given”.

In addition, not only have insurance companies added on the 15% they have decided to add a bunch of profit for good measure! I checked with several of my friends and other insurance suppliers; they are experiencing a 20% to 45% increase in premiums in some cases.

“Something is rotten in Denmark” and I for one are not prepared to accept the explanation I have been given so far. This increase is tantamount to ransom by Canadian insurers and the hardship it will cause to commuting families across Canada will be far reaching into the future. This is something you should call your local MP about, otherwise be prepared to pay these outlandish insurance premiums.

Alan Masters

Beeton

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