Accident Rates Declined, Driving Declined, But Auto Insurance Rates Increased

August 17, 2021, Kitchener, Ontario

Posted by: Robert Deutschmann, Personal Injury Lawyer

The Ontario Trial Lawyers Association reported that last year between March 17 and November 2020, Ontarian’s auto insurance premiums increased by an average of $30 per policy even though rates of fatalities, personal injury and property damage collisions decreased by almost 60% compared to the last two years.

Fewer car accidents mean fewer car insurance claims. Using this logic, premiums should have decreased substantially but that appears to be untrue. Insurance companies made big news when they gave pandemic rebates to ‘offset’ their savings but the very modest savings awarded the consumer is offset by the increase in premiums. It turns out that although some insurers awarded rebates over 460,000 drivers saw no relief in premiums at all.

Ontario car insurance rates have increased steadily over decades and insurers are making huge profits. Coverages for personal injury continue to fall short of compensating many accident victims adequately for their treatment, while other coverages like income replacement benefits have not increased at all in decades. At a maximum of $400 a week, there isn’t much living to make for those who cannot work due to their car accident injuries.

It is time to re-set the system. Structural changes are required to ensure that the many victims of car accidents are adequately compensated for their injuries and that their future treatment and standard of living is assured.

What Should Change?

The ‘secret’ and growing deductibles should be eliminated from settlements. The Deductible applies on Pain and Suffering Damages and sees the first $37,983.33 of any settlement go right back into the pocket of the insurers. If your settlement is $38,000 you may end up with $6 in your pocket.

  • Allowing personal injury accident victims to sue their own insurers when insurers bully victims and break contracts.
  • Restoring medical and care benefits to injured victims that have been cut over the last two decades by successive governments.
  • Establish transparency in the system. Auto insurance is required by law but insurers are effectively lobbying all governments to increase their own profits and reduce the benefits awarded to accident victims.

What Do the Insurers Say?

The IBC (Insurance Bureau of Canada) tends to speak for the industry and they have taken the position that more people are driving instead of taking public transit. They have not addressed lowered accident rates.

What Can You Do?

  • Contact your provincial MP and demand changes that protect consumers not record profit-making companies
  • Contact your insurer and tell them you want lower rates and better coverage
  • Shop around for better premiums
  • Add the most coverage you can by law to your policy. It doesn’t cost much but will protect you and your family in case of catastrophic accidents.
  • Drive safely to keep yourself and your family safe

At Deutschmann Personal Injury Law we undertook surveys of auto policy coverages and consumer knowledge. You can read the most recent one here to arm yourself with knowledge.

If you’ve been in a car accident and been seriously injured contact one of the experienced lawyers today. Your first consultation is free and we will work with you to secure your future.


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About Deutschmann Law

Deutschmann Law serves South-Western Ontario with offices in Kitchener-Waterloo, Cambridge, Woodstock, Brantford, Stratford and Ayr. The law practice of Robert Deutschmann focuses almost exclusively in personal injury and disability insurance matters. For more information, please visit or call us at 1-519-742-7774.

It is important that you review your accident benefit file with one of our experienced personal injury / car accident lawyers to ensure that you obtain access to all your benefits which include, but are limited to, things like physiotherapy, income replacement benefits, vocational retraining and home modifications.

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