Ten auto insurance companies, which serve more than a fourth of Ontario drivers, have been approved to raise their auto insurance rates once again.  One of the reasons for the increased rates is the cost pressures being placed on insurers.

It’s important to keep prices in perspective though because auto insurance rates are still relatively low when compared to previous years.  When compared to the cost of living, rates are reasonable.  Finance Minister Dwight Duncan plans to announce changes to auto insurance rates during the government’s 5 year review.

The article points out that one of the main arguments over the health care debate is that if there is going to be a mandate on health insurance then premiums must be made affordable.  The same concept should be applied to auto insurance since it is required in most states.  The policies need to be readily available for everyone, fairly administered and with reasonable auto insurance rates. 

There is also much debate over how auto insurance companies determine their rates, especially in Michigan where previous posts discuss how they are debating the use of the credit score.  Many believe not only should credit score be excluded from auto insurance companies’ formulas, but also income, gender, zip code, marital status, and bankruptcy.  Some states are considering excluding employment status, which is important for today’s high unemployment rate.