Is it any wonder that we in Ontario think that car insurance is regulated by the government when a letter announcing changes to our accident benefits arrives bearing the logos of the Insurance Bureau of Canada and the Financial Services Commission of Ontario?  

Huh?  I know.  

It's this buried in the weeds kind of communication that hides the real facts - the ones that are not mentioned - yet they are there just the same.

What are you blathering on about?  OK, let's start at the beginning.

At the end of June I, like every insurance premium paying slave in the province, got a letter from the above agencies (and my broker) stating that September 1, 2010 my auto insurance policy would change. According to the letters what are changing are the amounts (they call it reform) that will be paid out in Accident Benefits. These new max limits will cover replacement income, medical, rehabilitation and attendant care payments.  What really shocked me though is that these payment limits are going down! Not up!  Can you imagine? Is this how my government looks after my welfare?

Are you incensed yet? No.

I know complicated and boring. A necessary evil you'll say, while the jaded among you will drawl - "as long as I pay less, whatever". 

And that's the real point of my anger - Nowhere does it mention that my rates will be dropping along with my accident benefits - So by process of elimination I quickly figured out that come September I'll be paying the same premiums for less benefits.  What a racket! And the best part is that with the government seal on this letter I should be lulled into a sense of legitimacy.

Throughout July I waited for the press to pick up the story, convinced that some sharp reporter would see what I did - and they did, briefly. The headline I remember said insurance premiums were set to drop as much as ONE percent as a result - Wahoo, nice spin - hey a good news story. Please...  then the Black Block burned some police cars and the story was gone - poof!   No coincidence there I suppose.  

And that's why these sort of legalize obscured announcements are purposely slated for summer - when we are too fat, stupid and happy to care. They are counting on the fact that between sun burn, flip-flop malfunctions and yummy lime flavoured beer we'll be too preoccupied to notice the hand in our pockets. Sadly they are usually right.

So as September grinds closer the insurance business is no doubt getting ready to spin this story like Rumplestiltskin claimed he could spin gold out of straw.  Just watch them.  If it even makes the papers again they will talk incessantly about how you can now "customize your insurance policy" to fit your lifestyle - translation, from here on you pay the same for less.  And if you just want the same amount of coverage you have now you'll have to buy it as an option and pay more.  If you stay with the policy you have now you'll continue to pay just about the same for less.  It just won't sound like this when they say it.

When did we get so stupid?

When did we lose the ability to see the trickery and call it by its real name - an insurance scam.