Ontario consumers may have overpaid for auto insurance by $3 billion to $4 billion between 2001 and 2013, according to a study done for the Ontario Trial Lawyers Association.
In 2013 alone, they may have paid $840 million more than they should have to insure their vehicles, according to the study by Fred Lazar and Eli Prisman, professors at the York University Schulich School of Business.
The OTLA is calling on Ontario’s auditor general to review how auto insurance rates are set in Ontario. Of particular interest are the tools used to set the return on investment for auto insurance companies. “Auto insurance companies in Ontario have had a relatively free ride during the past 20 years,” Lazar wrote in the report, released Friday.
CBC News – Apr 10, 2015.
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