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Look Out! It's a car insurance pile on!

If you drive a vehicle without insurance you are an ass.  That said, the fact that the government and the insurance industry are once again tag-teaming this issue has to raise some questions.

Like why the government claims there are tens of thousands of uninsured drivers in Ontario willing to risk huge fines to drive without insurance?  Who would do that - certainly not you - but that's no reason to zone out on me now.  Hang in for another minute; you're free will is at stake. 

On the surface what the Minister of Transportation and the Insurance Bureau of Canada want to do (no licence sticker renewal unless you can prove you have insurance) is a good move.  See what they have said in this Aug 3rd news release.  

"Uninsured vehicles and their drivers put other road users at risk. That's why it's so important that we get them off our roads. Being able to check a driver's insurance coverage information in real-time will make it more difficult for these drivers to get on the road in the first place. The message is clear: to drive in Ontario, you must be insured - it's the law."

 - Kathleen Wynne

Minister of Transportation

"Insurance Bureau of Canada and the automobile insurance industry in Ontario continue to work together with the Province to promote road safety in Ontario. IBC looks forward to the project launch in November as the next step in deterring uninsured vehicles on Ontario's roadways."

 - Ralph Palumbo

Vice-President, Ontario, Insurance Bureau of Canada

Interestingly released during the single most popular holiday week of the summer - Huh...  Did you even hear about this? 

So, what am I on about?  Simple. I firmly believe that only a very small number of people are irresponsible scofflaws who refuse to buy car insurance just for the hell of it. Instead I think most drivers without insurance can't afford it.  This group is the working poor, the young and underemployed and those that have had some bad luck (however caused) and simply can't pay the astronomical premiums demanded by insurance carriers.  These people need help not punishment.  Yet, once again we have our elected government telling us that we must buy from a private insurance industry - and pay whatever they demand if we want to drive.  If we don't our own police and courts will fine us up to $25,000 for a first offence - and a fine of up to $50,000 for a second offence, and the possibility of a driver's licence suspension for up to one year. What the hell is that about?

Am I against insurance? No. Should everyone have it? Yes.  But, and this is a very big BUT - if the government demands insurance coverage compliance they should offer a fully funded alternative to the private insurance company rates - otherwise they are simply strong-arming for that industry and I didn't elect anyone to do that to me. Did you? If you think I'm goofy consider that several Canadian Provinces currently have government run insurance programs - in fact when I started driving 30-some years ago the Ontario Government also had simple, bare bones, liability-only program for those that couldn't afford better coverage.  It was simple and cheap. But not anymore.  Now the government I support with my taxes is threatening me if I don't pay what a private insurance company demands. 

Wake up people - your freedoms are being eroded.  

 

Page: 1
Comments: 7 of 7
Posted at 2011-03-10 19:38:27I LOVE CARS AND MOTORCYCLES BUT THE WAY INSURANCE IS SET UP I HAD TO GIVE UP MY HOBBIES COST BECAME UNATAINABLE, WHY CAN WE NOT HAVE THE SAME AS IN EUROPE, WHERE THE DRIVER IS INSURED NOT THE VEHICLES,YOU ARE COVERED NO MATER WHAT YOU DRIVE, ONE POLICY FOR ALL.
Posted at 2010-12-15 09:48:27Insurance is a necessary evil in order to operate a motor vehicle on a highway in this province, but its evil lies in its authority to force its citizens to line the pockets of Private Companies. A friend of mine, a 21yr old male, moved from BC where they have "Provincial Insurance" and he paid just over $1500 a year for a 2dr sportscar. Upon arrival in Ontario, his yearly cost went to 2300 and he couldn't get full coverage without dropping another 500 for a total of 2800.00/yr with 0 tickets on his record. And oh yeah, now the "Private" insurance companies are using any ticket, whether it be a simple insurance slip to a "fail to have ownership" as justification to raise your rates by using our Police's Traffic Enforcement Initiatives as the arm to produce record profits. These tickets have no bearing on your ability to operate a motor vehicle but the bottom line is Insurance companies are private business's aimed at making money. Forget the Points System developed to target "bad drivers" that used to have some merit, its gone now too. The article speaks to the potential of paying $25,000.00 as a first offence, not even close. The HTA identifies a $5000.00 minimum as a set fine to operate a motor vehicle without insurance, but as an active employee with 8yrs working alongside the court system, I am yet to see a conviction penalty higher than $2,000 on a first offence. I have witnessed 3rd convictions where the driver received a $1000.00 fine, what a joke, I pay more than that a year for just one of my family vehicles but that speaks to our appointed Justices of the Peace persons who require zero legal background, but thats a whole other can of worms. Insurance is supposed to protect drivers and passengers on our roads but does it? Insurance is a Civil Contract between two parties that is mandated by our government and enforced by Provincial Laws but affords no protection for us in the Civil Courts where the game is played. There you retain your own legal representation who works off of a 35-50% rewards retainer and takes up to half of your settlement. Could you live off of $500,000.00 for the rest of your life with the loss of a limb or a brain injury, I couldn't and neither could my family. I realize I would receive a disablity pension from my government, but you receive more funding as an able bodied person living off of welfare working for straight cash moving furniture on weekends alone. The Insurance system is broken and needs to be addressed.
Posted at 2010-12-14 14:31:18Can anyone think of a way to protest against the insurance industry and the government? It needs to be something that will put the fear of loss of position into those involved within the government and loss of dollars for the insurance industry! If so.... post hear, on face book and any other high volume sites! Let's use the Internet and our phones to draw attention to this BS. It really is like a government backed scam!
Posted at 2010-09-04 16:05:18What a scary bunch of badly informed people write in to a poorly researched article on enforcing compulsory insurance laws. Ontario has the broadest insurance product in Canada, partly because the rich citizens of Ontario have pushed for broader coverage for years.
Posted at 2010-09-04 14:14:45The same week McGuinty asks the feds not to increase interest rates because the fragile economy can't take the added expense, he allows insurance companies substantial automobile insurance rate increases and to lower our auto medical coverage without lowering rates. In other words, to keep the same coverage you have to pay BOTH increases. What did they used to say about forked tongues?
Posted at 2010-09-04 13:37:02I agree with this article; the insurance companies in this country have evolved into a type of legal mafia!protected and supported by our government! Their lavish salaries and infrastructure all paid for by us! Is no legal way to boycott these bastards???!!!
Posted at 2010-09-04 11:02:48Auto insurance is killing the auto hobby, My wife and I have 2 daily drivers and 4 hobby Cars/trucks and one RV. In Alberta we pay FULL insurance policies on all of them. Are we getting hosed ; YES is there a way around it? Not that I have found,... in other provinces you pay a premimum on one car and add additionals at a fraction of the cost. I have always found insurance to be one of the biggest scams on the face of the planet. Now they have no problems taking your money but let me tell you getting money back from then when you need it is a PITA. I could go on for somtime but I feel my mood turning and I want to enjoy my saturday. -Jenssen
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