Liberals well short of goal to cut auto insurance costs

With just over four months to go, the Liberal government is not even half way to fulfilling its commitment to reduce auto insurance premiums by an average of 15 per cent.

“There is no way they are going to make their target, not unlike any other of the promises that they’ve made,” Progressive Conservative finance critic MPP Vic Fedeli said.

The Financial Services Commission of Ontario reported Wednesday that Ontario’s 9.4 million drivers have only seen their rates go down by just over 7 per cent.

The promised 15-per-cent cut — averaging $225 a year — was included in the minority Liberal government’s 2013 budget in order to the get the New Democrats to let it pass.

That August, Finance Minister Charles Sousa said it would take two years to fulfill.

Sousa told reporters at Queen’s Park Wednesday he’s doing “every- thing that’s necessary” to reach the target.

“I’m committed to going to the15 per cent,” said Sousa, who had predicted an 8-per-cent cut after one year.

“We’re now over 7 per cent in reductions, we’re halfway there. We do have other initiatives we’re bringing forward to further reduce those costs,” added Sousa, who will present his spring budget next Thursday.

“Keep in mind, some of the recommendations, some of the legislation that we put forward is only now starting to kick in so there’s going to be further reductions,” said the finance minister.

He wouldn’t be specific about the new measures.

“Part of it is finding ways to reduce costs in the system and enabling all of us to benefit,” said Sousa.

NDP Leader Andrea Horwath said the fact the auto insurance reduction is not even halfway there is evidence “that the Liberals once again have been favouring insurance companies over drivers.”