Another auto insurance private member's bill introduced in Ontario

On April 23, 2012 York West MPP Mario Sergio introduced New Drivers' Insurance Rate Reduction Act , 2012 (Bill 71), which is intended to lower rates for new drivers.

MPP Sergio previously introduced Bill 43 which deals with allowable elements of a risk classification system. Bill 43 has not proceeded beyond first reading in he Legislature. Both these bill are private members' bills and historically very few of these bill are passed.

Bill 71 requires a risk classification system used by an insurer to determine rates for automobile insurance to provide for lower rates for new drivers by crediting new drivers with additional years of driving experience. All new drivers get credit for 3 years driving experience and those that have completed a driver education course at a recognized school get credit for 6 years driving experience.

A new driver is disqualified from receiving additional years of credit in a number of circumstances, including

(a) if he or she has been found to be more than 25 per cent at fault in an accident;

(b) if his or her licence has been suspended for non-payment of a fine (excluding parking tickets); or

(c) if he or she has been convicted of,

(i) a provincial offence related to driving,

(ii) a Criminal Code offence related to driving, or

(iii) an offence under in another jurisdiction in North America for similar offence.

The bill can be found here.