Some time ago, Ontario drivers were promised a 15% decrease in car insurance. As I recall, this was accomplished by reducing the maximum injury compensation. The insurance companies’ profits soared, and premium reductions were trivial or negative.

Now we’re doing it again. We’re being told our insurance premiums can be reduced – but only if we accept merging of benefit categories (injury versus long-term care, for example.) This is, clearly, a reduction in coverage. Today’s Toronto Star article estimates that, to keep the same coverage as before, will cost the average car driver some $143 per year.

So, our latest reduction in-car insurance premiums is quite like the last one. It is actually an increase.

You can probably guess what the dumb questions are on this topic, but here goes anyway:

1. Is the net effect of Ontario politician promises, and insurance company deliverables, a fine example of public mendaciousness?
2. Could it be that insurance companies have a powerful lobby, and in fact control insurance premiums to ensure (sorry for the pun) large profits?
3. Are we stupid? to allow our politicians to sell us this pile of dogpatch?

Meanwhile, in Alberta, the largest property insurance loss, overall, is looming over the property insurance companies (most of which ensure drivers too, eh?) So for the final dumb question:

Does anyone out there believe that property (home, cottage) insurance rates will not rise dramatically in Ontario, as the insurers seek to recoup Alberta losses from the entire country of clients?