Why Ontario drivers pay the highest car insurance rates in the country – The Globe and Mail #car #camera

#car insurance ontario

Why Ontario drivers pay the highest car insurance rates in the country Add to.

Nick Dasko bought his first car when he was 22 – a seven-year-old Mazda Protege that cost him $10,000. Then came the insurance bill: more than $6,000, even though he had no tickets or at-fault accidents.

Some of his friends were paying even more – $10,000 was not unheard of.

Auto insurance is the wild west of compulsory services. If you want to drive, you have no choice but to buy it – but what you pay varies wildly. According to quotes obtained Tuesday from kanetix.ca, a 20-year-old male in Winnipeg with a clean driving record would pay $1,396 driving a 2008 Honda Civic DX two-door coupe for pleasure (not to commute to school or work) and compiling 15,000 km/year. In Calgary, that same driver would pay between $2,973 and  $3,789. In Toronto, the bill would range from $4,239 to $9,270  – an increase of 664 per cent.

The obvious question – why?

While it costs more to cover claims in Ontario (the province is plagued by insurance fraud) private insurers claim that the actuarial evidence used to rate drivers shows that males under 25 have the worst statistical record as a group. Consequently, individuals in the 16-to-24 group pay more, even if they’ve never been involved in an accident or received a ticket for a traffic violation. Essentially, young men are deemed guilty until proven innocent – at age 25.

“You are being prejudged,” says Dasko. “It’s the last legal form of discrimination.”

Public auto insurance programs, such as those in Manitoba and Saskatchewan, take a different approach. Standard rates apply to every driver, regardless of age or gender. Auto insurance is much less expensive for a 20-year-old full-time student in Winnipeg driving the same car as his counterparts in Toronto, Montreal and Calgary.

The private insurance industry defends the actuarial approach. “It’s not discriminatory,” says Pete Karageorgos, manager of consumer and industry relations for the Insurance Bureau of Canada. “It’s based purely on statistical analysis. It’s like charging more for house insurance in a high-risk neighbourhood. I think people have accepted this. In a public auto insurance system, young drivers are subsidized. In Ontario, young drivers pay rates that reflect their actual risk.”

Statistics show that young drivers do cause a disproportionate amount of damage. Drivers aged 16 to 24 represent 13 per cent of the driving population, but account for 24 per cent of fatalities and 26 per cent of serious injuries. The question is whether Ontario’s steep insurance charges for young drivers accurately reflect actuarial data.

State Farm Insurance spokesman John Bordignon says Toronto is a “special case”: “It’s got the highest population density, the worst roads, and a high rate of theft. The costs reflect those risks.”

Contrary to the public system, in Ontario, Alberta and other provinces, every driver must help bear layers of extra costs. Ontario’s industry is made up of more than 100 private companies that are overseen by a government agency called the Financial Services Commission of Ontario. Revenue comes from two sources – insurance premiums, and the money insurers make by investing the money consumers give them.

Private insurers say that their system has the built-in advantage of competition: “If you’re not satisfied with your insurer, you can go shop around,” says Karageorgos. “With government insurance, there’s no choice. Private insurance gives you better service.”

Not everyone agrees. The Consumers Association of Canada (CAC) deems private auto insurance to be one of the biggest rip-offs that Canadians face. After studying the industry for years, CAC concluded that a properly run public insurance system was the best choice, but found itself locked into a debilitating public relations battle with the private industry.

“There are some things that should be run by private industry,” says CAC president Bruce Cran. “And there are others that should be in the hands of government. Auto insurance is one of them.”

Cran says that excessive insurance charges affect everyone, not just drivers: “The costs run through the entire economy,” he says. “Everything you buy, every last piece of bread you eat, is carried in a vehicle that has to be insured. So we all pay, whether we have a car or not.”

The CAC’s investigation of the insurance industry yielded interesting insights into the way it operates, and why costs are so high. In 2004, for example, CAC learned that private insurers had paid $290-million in secret commissions to insurance brokers who steered business their way. This practice had a direct impact on consumers – instead of hunting for the best price for their customers, brokers sold the policy that offered them the highest commission.

A public auto insurance system can offer fundamental business advantages. Most important, a public system reduces overhead costs – instead of multiple companies, each with its own head office, computer systems, etc. there is just one, which cuts duplication and creates efficiencies of scale.

Other significant savings include profit margin (public insurance systems don’t have to pay dividends to shareholders) and advertising – public systems don’t have to budget for TV spots and a talking gecko. Public insurance plans can also control costs more effectively – body shops, medical clinics and towing companies must comply with rates set by the public plan, which wields monopoly power over suppliers. Ontario’s private insurers, on the other hand, face ongoing problems with gouging and fraud.

As with U.S. health care, the debate over private and public auto insurance has been cast along ideological lines that obscure underlying economic realities. Ontario’s private insurance firms admit that rates here are the highest, yet insist that theirs is the superior business model.


Using the website kanetix.ca on Tuesday, we obtained quotes for a 20-year-old full-time male student, in the 16-to-24 age group. We listed him as principal driver, clean record, living at home, using a 2008 Honda Civic DX two-door coupe for pleasure (not to commute to school or work) and compiling 15,000 km/year. Deductible was $500 for collision and comprehensive, with $1-million liability. The site harvests quotes from different companies, but those companies do not necessarily quote for all cities; the Canadian Automobile Association does not sell service in Montreal. The Manitoba rate was obtained directly from a dedicated website. *Kanetix provides a “lowest rate” but does not identify it until the consumer calls for a quote.

Ford Prices: MSRP, Invoice Price – Dealer Cost #car #review

#invoice price for cars

Ford Prices

Most people mistakenly believe that the Ford Invoice Price reflects what the dealer paid for a new vehicle – The true Dealer Cost. It is not!

The Dealer Invoice Price has hidden mark up such as holdback and other fees built into the price.

The following Ford price guides strip these hidden dealer profits out and illustrate the MSRP, the invoice price, Holdback and the true dealer cost. (See price definitions below.)

Why You Should Know the True Dealer Cost.

Knowing the dealer cost of a new Ford gives you needed leverage when it comes time to negotiate a great price. Negotiating from the cost up and not the MSRP down can save you thousands on your next purchase.

Ford Price Terms Definitions

Buying your first new car can be an exciting experience. Unfortunately, it can also be confusing. Below are some commonly used industry terms to help you get a leg up on the process.


The Manufacturer Suggested Retail Price, usually abbreviated to MSRP, is the suggested retail price set by the manufacturer. The manufacturer sets the price based on certain criteria. The MSRP does not vary from store to store because it is not set by the individual retailers.

Dealer Invoice Price

The Dealer Invoice shows the amount that the dealer must pay the manufacturer to purchase the car so that it can be sold on their lot. Due to Rebates and Holdbacks, this many not reflect the actual cost.

Dealer Holdback

Sometimes manufacturers artificially inflate the prices charged on the dealer invoice. The dealer has to pay a higher cost initially, but after a set amount of time, the manufacturer refunds the extra amount that was charged.

Dealer Incentives are Rebates and other incentives offered by the manufacturer to dealers. Special deals may be offered to encourage dealers to move particular models.

Regional Ad Fees

These fees are cost of business fees charged to the dealer for advertisements that the manufacturer runs in the dealer’s local area. They are not often negotiable and are charged in the dealer’s invoice.

Destination Fees are basically shipping and handling fees that are charged to the dealer. It covers the cost of getting the car from the factory to the dealer’s showroom.

Manufacturer Incentives and Rebates

These incentive are similar to Dealer Incentives but are offered to the buyer instead. All the savings from these Rebates go directly to the buyer.

True Deal Cost – The actual price Ford dealers pay for their new vehicles. Here is how it is calculated:

Formula for Calculating Dealer Cost of a New Ford:

  • Base Ford Invoice Price + the dealer Invoice price of Options + Destination – Holdback = Total Dealer Cost.
  • What is Dealer Holdback? A hidden amount that manufacturers give back to a dealer. It is a percentage of the MSRP or the Invoice price. The holdback for Ford is 3% of the Total MSRP. (See the New Car Dealer Cost Example.)

Total Dealer Cost (calculated above) + Taxes / Licensing Fees – Rebate / Incentive = True Cost (You can get rebates and incentives here )

Fletcher Auto Group #whats #my #car #worth

#auto dealership

Fletcher Auto Group

Frank Fletcher Chrysler Dodge Jeep Ram – Jonesboro

3314 Stadium Blvd Jonesboro. AR 72404

Sales. (888) 760-4154

Frank Fletcher Chrysler Dodge Jeep Ram – Joplin

3111 E 32nd St Joplin. MO 64804

Sales. (877) 820-2215

Frank Fletcher Chrysler Dodge Jeep Ram – Jonesboro

3314 Stadium Blvd Jonesboro. AR 72404

Sales. (888) 760-4154

Frank Fletcher Chrysler Dodge Jeep Ram – Joplin

Finding Used Car Values #design #a #car

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Finding Used Car Values

Automotive Dealer

Want to sell or trade-in your older vehicle and need to know about old car values? Many websites offer car values for used vehicles.

Where to Find Older Car Values


Edmunds – This online automotive resource website is great for all sorts of auto answers including old car valuations. Once you’re on their homepage, click on “Used Cars” and select your year, make and model to find a value. Edmunds offers values as far back as 1990.

Kelley Blue Book


NADA – The NADA also offers car values from 1990 and newer. If you’re looking for a model older than 1990, the NADA is the easiest site to use as they have a quick tab at the bottom of the page that says, “Click here for models older than 1990.”


AutoTrader – Once on AutoTrader’s homepage, click on the “Research Cars” tab and then “Used Cars.” The AutoTrader offers car values as far back as 1981. For car values older than 1981, visit their Classic Car web page.

Black Book Car Values

The Black Book USA and Canadian Black Book may also be a good place to look for used car values. While these sites require a subscription to view the information they have compiled, they are generally seen as extremely accurate and well-respected. If you are considering buying or selling several used vehicles this year, getting a Black Book subscription could be a good idea.

Manheim Gold

Manheim Gold – For older classic car values, visit Manheim Gold. Select a make and year and Manheim will give you all the models the manufacturer produced that year. Manheim Gold is a trusted website as it offers older car values for vehicles in poor, fair, good, and excellent condition.

Time Well-Spent

It always pays to do your homework. While looking up the value of a car may seem like a hassle now, it will save you money in the long run. Doing research about secondhand car values can only help you in negotiations.

Florida Car Insurance Quotes – Online Auto Insurance #car #auctions #ireland

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Compare Florida car insurance rates from multiple companies:

The best way to find low cost, quality coverage is to obtain free quotes from multiple Florida auto insurance companies in order to find out which company will offer the lowest rates. OnlineAutoInsurance.com allows shoppers to compare rates in Florida with one simple process.

Whether they are looking for full coverage or just liability coverage . motorists can obtain the cost of premiums instantly and easily from top companies such as Drive from Progressive, AIG, Unitrin and more. This can be extremely useful in helping individuals locate the right policy from a reliable provider at a price they can afford.

More about Florida Auto Insurance:

If a vehicle with four wheels or more is being registered, it must be insured by a company licensed by the Florida Department of Insurance. Failure to buy Florida auto insurance and maintain coverage on vehicles can lead to having driving privileges suspended and/or having a car s tags and registration suspended for up to three years or until proof of a valid Florida automobile policy is presented. Additionally, one may be fined anywhere from $150 up to $500. That s why OnlineAutoInsurance.com is here to assist Floridians with their coverage needs and to help them find cheap FL car insurance rates.

Florida s state laws requires that motorists maintain at least the following minimum coverage:

  • $10,000 personal injury protection. (PIP)
  • $10,000 property damage liability (PDL)
  • $20,000 bodily injury liability (BIL) per accident if the policyholder has been involved in a crash, or has been convicted of a certain offense.

Keep in mind that the Florida car insurance requirements do not include compensation for the insured s vehicle in case of an at-fault accident.
Personal Injury Protection (PIP)

  • Compensates a loss due to injury regardless of fault.
  • Applies to bodily injury to the insured, relatives residing in the same household and passengers who are not required to have PIP.
  • Protects the policyholder if he or she is injured as a pedestrian or bicyclist as long as the injury is caused by an accident with an automobile

Bodily Injury Liability (BIL)

  • Pays for serious and permanent injury or death to others when the insured driver causes a crash involving the insured automobile.
  • Pays for other parties injuries up to the limits of the policy and provides legal representation in the case of a lawsuit
  • Pays for injuries caused by policyholders or family members residing in their household
  • May provide coverage for others who drive the policyholders s vehicle with permission

Property Damage Liability (PDL)

  • Pays for damages that policyholders or members of their family residing in the same household caused to other people s property in an automobile accident

OnlineAutoInsurance.com provides articles on how to compare Florida auto insurance rates from multiple companies with one simple process. For more information on Florida s Insurance Laws, visit the Florida Department of Insurance .

Questions Regarding Florida Auto Insurance

Even though Florida is a no-fault state, the person who is responsible for an automobile accident is still responsible for covering the property damages, while medical expenses are covered by each driver’s own policy. To help ensure that drivers are prepared for.

To enter the Sunshine State by car and legally drive within the state’s limits, the vehicle must be insured. Whether it will need to be covered by a Florida auto insurance policy depends on whether the car is registered in the state. Drivers who split their place of.

Many vehicle owners in the Sunshine State who are over the age of 55 are good drivers, but as people age there are certain abilities that begin to degrade, which can impair driving ability and increase the risk of being involved in an accident. Difficulty behind the wheel can.

News for Florida Car Insurance

July 1, 2014 – This July 1, a car insurance bill in Louisiana changes the rules for uninsured drivers while another bill in Florida applies changes to coverage for drivers with DUI convictions. Also, an auto insurance-related bill about premium refunds kicks in for Kansas drivers

January 22, 2014 – Florida motorists could soon see average savings of more than 13 percent on their personal injury protection (PIP) rates as a result of recent reforms, according to insurance regulators. That would translate to a broader reduction of 3 to 4 percent on overall car insurance bills. The estimates come from a Wednesday report.

Title Loans #japan #cars

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CASH 1 Title Loans

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Title Loans Get You Cash When You Need It

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How to Get a Title Loan

CASH 1 make getting money fast and easy because we understand that you may find yourself needing cash today. You can apply for your loan online, over the phone, or at one of our convenient store locations in Arizona or Nevada. After filling out the application you will receive an estimated loan amount from one of our loan officers. Then, bring your vehicle to one of our stores for a brief inspection, sign your documents, and drive away with cash.