Claims costs to blame for high Ontario auto insurance premiums

[Ceeker]

I would love to see full disclosure...

[NOTORIOUS VR]

Originally Posted by 1BADBMR

On top of that, those mother F**kers say its now manditory to insure my bike all year round. Are the insurance companies smoking crack? Who the f**k rides a motorcycle in the middle of winter?

THIS! Right here shows exactly how plainly they bend people over the table and give it with no lube... I want to know who the f*ck thinks that having to insure a vehicle for the entire year makes any sense ESPECIALLY when you cannot physically ride it and/or it's a recreational vehicle.

HockeyNut, I think you are an asset to this board with your knowledge on insurance companies. I just hate the ppl you work for

Agreed!

[nab24-]

insurance fraud is a pretty common thing that ive learned since i got bought a bmw... ive had at least half a dozen people try to get me to rear end them on the highway, one nut case even put 2 tires into the soft shoulder spraying my car with rocks and dirt then slam on his brakes thinking i couldnt see, and every time i got within 2 car lengths of him and i couldnt change lanes he was lock up his brakes, then after several failed attempts he pulled over a lane a screamed out his window at me... so i flipped him off and flew past. i never had this stuff happen to me when i drove a VW.

[InfiniteDice]

This reminds me of gas prices... all kinds of explanations why it's too expensive... basically legalized robbery, yet no solution to the issue.

Now compound this with the proposed employment insurance changes (need to take jobs up to 1 hour away) and you have a perfect system of forcing people who want a job to be mobile. In fact many jobs 'require' you have a vehicle.

We simply need to deregulate and adopt a system that encourages competition between insurance companies. Minimum of this and minimum of that coverage on everything only brings prices up.

[damameke]

Originally Posted by InfiniteDice

This reminds me of gas prices... all kinds of explanations why it's too expensive... basically legalized robbery, yet no solution to the issue.

We simply need to deregulate and adopt a system that encourages competition between insurance companies. Minimum of this and minimum of that coverage on everything only brings prices up.

2 topics that gets everyone blood boils..

gas per barrel (PBB) is trading less that $88 and yet gas price is still at $1.25, at $88 PBB, gas price shoud be in the 90 cent range...and yet goverment stil collects the same tax on gasoline.

To deregulate insurance - abolish FSCO - Financial services Commission of Ontario, this agency regulates the premimum we pay....and it has been approving the rates that insurance companies asked for...

Typing this increased my blood pressure....

[InfiniteDice]

You're right, before the HST gas prices per litre used to loosely correlate with the $ per barrel price... $90 per barrel... roughly $.90 per litre. Even after the government force fed us the HST for our own good, the price shouldn't be more than what? .95 - 1.00 per litre.

FSCO is probably rolling in bed with insurance companies and the government. Removing them will be like getting rid of a bad case of crabs in a 70's bush.

(Ocean crabs in a bush near the beach, in the 1970's).

[Bullet Ride]

Originally Posted by Ceeker

Ins companies are in bed with the gov't.

Originally Posted by Blades

lets say everyone gets into one accident in there lives .. I pay $130 per month which ends up being $15,600 in a total of 10 years. I had an accident with my 330xi back in 2004 that cost that much to fix. How much did the insurance make off me really? what about people that sue or get paid out for there whole car?

That's assuming that they take your money and stuff it in a mattress. They take that money and invest it. And you can be sure that they always make money on their portfolio. Depending on claims and losses they don't necessarily net a profit at the end of the day (as hockeyfan pointed out with those stats) but their investment portfolio has never shown a loss, and here's why...

Going back to what Ceeker said, the reason why the insurance companies are in bed with the government is because of the type of investments that they buy....



...can you guess it?




Government bonds! The majority of the investments that insurance companies will buy with what's left over of your premium (after covering claims, operational costs, reserves, etc...) are government bonds because are essentially guaranteed, no risk investments. So when insurance companies increase your premium that premium increase goes straight to the government in the form of purchased government bonds and depending on how the year was for claims and losses the profit from the investments goes to the insurance companies (shareholders).

Don't expect premiums to decrease any time soon.

[SiR]

Originally Posted by hockeyfan27

At least 50% of the facts I make up are almost true, I don't appreciate you saying it's "all bs".
I'd love it if you could post the source for those fraud facts for me to take a look at. I'll send you a free bottle of lube when you do

I wasnt specifically talking about you... just the excuses from the companies/industry. Unless you are the one who came up with them?

Ive read about those stats on various news outlets/seen it on the news/heard it on cbc radio etc. Fraud is a much bigger issue in the states. So much so they have a specific branch to deal with it.