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Auto insurance rates drop 5% since August

It costs less to insure a car in Ontario according to new numbers by the province’s finance minister.

Auto insurance rates have dropped a total of 4.66 per cent since August 2013.

The decrease comes as Ontario continues to implement its Auto Insurance Cost and Rate Reduction Strategy.

“Our government is working hard to ensure a fair and affordable auto insurance system for Ontario’s nine million drivers,” Ontario Finance Minister Charles Sousa said in a statement released Wednesday. “The average decline in rate approvals since August is proof that our Cost and Rate Reduction Strategy is working.”

The Liberal government agreed to an NDP demand for a 15 per cent cut in car insurance rates over two years in order to get last year’s provincial budget passed.

“We are on track to meet our goal of an average eight per cent reduction by August 2014, and by continuing to fight fraud and reduce uncertainty in the system, we’re confident we’ll get there,” said Sousa.

NDP Leader Andrea Horwath says despite this announcement, Ontarians are telling her that the Liberal promise to reduce insurance rates are coming up short.

“What I’m hearing from people in an informal way is that they’re seeing their rates go up instead of down,” she explained.

Horwath added that the NDP will be talking to the people of Ontario about whether they believe they are getting the results they hope from the commitments the Liberal government made in the budget.

Click here for an interactive insurance rate comparison tool.

With files from The Canadian Press