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Ontario bill to cut auto insurance rates by 15% by August 2015

The Ontario Liberal government has passed legislation aimed at reducing car insurance premiums by 15 per cent on average by next August.

The government says the new bill, the Fighting Fraud and Reducing Automobile Insurance Rates Act, will help reduce costs and uncertainty in the auto insurance industry and protect more than nine million licensed provincial drivers as well as fight fraud.

In 2013, the then-minority Liberal government agreed to an NDP demand for a 15 per cent cut in car insurance rates over two years in order to get its provincial budget passed.

Auto insurance rates have dropped an average of over six per cent. But the government had promised an average eight per cent reduction by August 2014.

The NDP’s Jagmeet Singh told The Canadian Press that insurance companies saved $2 billion a year when the Liberals changed regulations four years ago but never passed the savings onto drivers.