Studies have shown that Ontario has the highest insurance premium rates in the country although its accident rates are the lowest in Canada.

The average automobile insurance premium in Ontario in 2015 was $1458 per vehicle, which is 55% higher than the Canadian average. However, what irks drivers more is the fact that most of the money in the system doesn’t go towards providing benefits to accident victims who end up not receiving the required treatment and care. Instead, insurance companies spend a large portion of their funds on paying experts in various fields to ensure that payment settlements are either kept to a minimum or avoided altogether.

“The system is filled with disputes and inefficiencies …” opined David Marshall, former head of the Workplace Safety Insurance Board. He advocates the adoption of a “care-not-cash” approach which focuses on victims and provides transparency in legal fees paid by insurance companies.

Ontario provides no-fault statutory accident benefits to all those who have been injured in automobile accidents regardless of fault. These benefits are to be paid by the victim’s own insurer. Additionally, victims are also entitled to sue the at-fault party for compensation if that party’s negligence was responsible for causing the accident.

Consult an experienced Sault Ste. Marie personal injury lawyer immediately if you or a dear one has been injured in an automobile accident. You may be entitled to compensation.

What Factors Affect Premium Rates?

Vehicle owners and drivers often find that they pay one particular rate, while spouses, friends and neighbors pay another. Hence, it’s good to understand how premium rates are calculated and what is the kind of coverage you get for that particular rate.

According to the Financial Services Commission of Ontario, premium rates are determined by looking at various factors that include:

• Personal profile
• Amount of coverage purchased
• Deductibles
• Company policies

Personal profile includes your age and address, type of vehicle you drive and your driving history. Where you live affects your premium rate because rates are higher in urban areas since there are more vehicles on the road and chances of accidents are higher. Urban locations also see more auto thefts.

The type of vehicle you drive – whether it’s a safer, family model or a flashy speed-machine – affects your premium rate.

Age, gender and marital status are factors because studies show that crash rates are higher for unmarried males under 25. Students are offered discounts especially if they get good grades.

If you take driver-safety courses, you can get a better rate.

Your driving history/record determines your risk assessment.  This includes accidents where you were more than 25% at fault. Those with fewer crashes obviously pay less and the reason for the accident is also taken into account. How often and far you drive affects premium rates. People with long daily commutes may pay more.

You can choose the deductibles you want applied, which are mandatory in your province, and determine what additional coverage you want to pay for. This affects the overall calculation of premium.

Dealing with insurance claims-adjusters can be stressful in the aftermath of a serious accident. An experienced Saulte Ste Marie personal injury lawyer can provide assistance and advice.