New auto legislation promises to reduce prices and fight fraud

Bill will decrease auto insurance rates, regulate tow trucks

The Ontario parliament has passed its auto insurance legislation, designed to reduce costs of auto insurance and fight fraud. The Fighting Fraud and Reducing Automobile Insurance Rates Act will further decrease auto insurance cost, which has already fallen by six per cent, the government says. A significant portion of this bill attempts to regulate tow truck and storage services.

“This act will deliver real results for Ontario drivers involved in traffic collisions or in need of roadside assistance,” MPP David Orazietti said in a press release. “Consumers should be confident that tow truck operators are reputable, properly trained and will treat them fairly.”

Some details in the bill include mandating that tow truck drivers disclose their interest in a facility for repair, storage or other services that they might tow a driver to. Additionally, the bill will also create a bill of rights for consumers that must be presented to them on request.

The passage of this bill is one of the steps the government is taking to fulfill their promise of reducing auto insurance rates by 15 per cent. They say, however, that further steps must be taken in order to achieve this goal.

About this article

By: Xuyun Zeng
Copy editor: Beth Jarrell
Posted: Nov 24 2014 11:31 am
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Filed under: News