Insurers continue with the scare tactics…

Insurers recently started a new advertising campaign to try and scare the public into accepting less for more. Alan Shanoff explains in his recent column in the Toronto Sun, read the article here. Since dramatic cuts to auto insurance in September 2010, collective profits of auto insurers in Ontario have jumped by 2 billion dollars – that is a lot of money! Yet, the promised reductions in premiums with cuts to our benefits never materialized. The insurers have simply used the cut in benefits to line their coffers. I am not against companies earning profits, all companies should maximize profits for their shareholders. However, insurers are not earning their profits by good business practices or through innovation – they are making money off the backs of injured car accident victims. It is time for a change in Ontario. Maybe it is time to abandon mandatory no-fault benefits in Ontario and focus on a true tort (at-fault party pays) system.