Ontario’s New Democratic Party recently leveled accusations at Canadian providers of discount car insurance that the industry was charging low income earning Canadians higher premium prices based on their neighbourhood – something that resonates quite strongly with Brits living in certain postcodes that pay more for motor car insurance than people in adjacent ones.
NDP researchers received a wide range of different price quotes using an identical driver profile, from as little as CAD $1,153 for an address in Toronto’s high income area of Lawrence Park, while the less affluent Fane-Finch location saw prices of CAD $2,517, a difference of more than double. Andrea Horwath, NDP Leader, remarked that it was quite obvious that insurers were taking into account what neighbourhood a given person resides in and not their motoring record when it comes to quoting insurance premium prices.
Ms Horwath was incensed, claiming that there was a total lack of fairness in the system. Motorists should be evaluated based on their motoring record, she added, not by who their neighbours are.
Poor neighbourhoods and areas saw the largest premium prices, Ms Horwath said, and while she did not outright accuse insurers of discriminating against the poor, the intimation was made quite clear by her comments, stating that there is a distinct worry in regards to what insurance providers are basing their rate evaluations on.
Premium prices are approved through a government agency, said the Insurance Bureau of Canada, and are based on many factors, including but not limited to the record of a motorist and the history of claims in the area in which they reside.