Despite his bill being voted down, NDP Brampton East MPP Gurratan Singh is vowing to fight the good fight. Last week as expected his private members bill to end auto insurance postal code discrimination was voted down by a majority of the Ontario PC party.
After the vote MPP Gurratan sent out this tweet: “Yesterday, the Ford Govt voted NO to lowering car insurance rates. This is after dozens of lawyers came out in support of my Bill to stop insurance companies from charging us more because of where we live. I’m going to keep on fighting until our rates come down.”
Last year, online insurance marketplace Kanetix.ca released a report showing Bramptonians pay 70 per cent more for car insurance than the provincial average. While the average Ontarian paid annual premiums of $1,316, Brampton residents were dinged for an average of $2,268 in 2017.
A group of 28 lawyers experienced in insurance litigation came out in support of Singh’s bill in an open letter addressed to the government and Premier Doug Ford on Oct. 31, claiming it was superior to the PC’s version.
It is unlikely any political party will be in a position to force the way insurance companies calculate premiums based on postal codes. As things stand, premiums are calculated based on the risks involved in certain postal codes. Based on the kind of claims as well as the frequency of claims is factored into setting annual premiums and not surprisingly many auto insurance holders living in certain postal codes in the GTA end up paying high premiums. -CINEWS