The Consumers’ Association of Canada today called on the Ontario Government to eliminate the huge deductible on personal injuries caused by Automobile accidents. At $30,000 Ontario’s deductible is the highest in the world. It was put in place just prior to the declaration of record profits for the Insurers in 2003. “in light of the obscene profits of 2004, this impediment should be removed immediately.” Said Mr. Cran. “It’s now time for the Government of Ontario to take this first serious step to fix the auto insurance industry

Record profits by the insurance industry are partly due to the innocent victims of crashes in Ontario not receiving full compensation for their injuries. In British Columbia there is no deductible for payment of pain and suffering yet that province has enjoyed stable rates for the last ten years. “In Ontario, victims of crashes have been paying for shareholder profits and this now needs to stop”, said Mr. Cran.


“I challenge the Government to go out in the street and ask the average consumer three questions”, said Mr. Cran.
Question one - has your premium gone down this year?
Question two - are you satisfied with the deductibles and benefit levels that you pay for under your policy? Question three – would you make a claim if you have a fender-bender?

“The answers to these questions would be no, no and no”, said Mr. Cran. Government sets the rules for auto insurance and compels consumers to buy this product. “In Ontario auto insurance has become an overpriced, third-rate product sold by companies who are now generating super-profits for shareholders at the expense of consumers”, said Mr. Cran.

“Consumers are paying outrageous rates for this product and when they need to use what they have paid for they are too afraid of the wrath of the industry to make a claim. “This state of affairs is ridiculous”, said Mr. Cran. “It should come as no surprise that this important financial services industry has lost the trust of consumers”.

For more information contact:
Mr. Bruce Cran, President, Consumers’ Association of Canada
Tel. (613) 291-79999