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Only real reforms will give Ontarians fair, affordable auto insurance

Guthrie Insurance

Re: Bring on government auto, by John Gerassimou, March 19.

In his letter to The Windsor Star, John Gerassimou raises his frustration with the current auto insurance system.

We agree, we pay too much for auto insurance and we are currently working to fix the system. But to suggest a government monopoly is not the answer.

It would cost hundreds of millions of dollars to set up and many more millions to run with no guarantee of lower premiums.

He might not know that in Ontario alone, 63,000 people were directly or indirectly employed by the P&C industry in 2009 and insurers contributed more than $2.2 billion in taxes to the provincial government in 2011, including a health care levy to pay for the medical needs of collision victims.

A government-run system would be an expanded bureaucracy, a higher cost of government, no choice for consumers and the kind of poor claims service you can expect when consumers don't have the option to take their business elsewhere.

The problem with Ontario auto insurance is not who is providing the product rather with the system itself. Ontario drivers pay the highest premiums in Canada because of the high costs, fraud, abuse, red tape, legal backlogs and outdated rules.

Handing that broken system to government won't fix it. Only real reforms will give Ontarians the fair, affordable auto insurance they deserve.

RALPH PALUMBO, Vice President — Ontario, Insurance Bureau of Canada

Source: The Windsor Star

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