Pledge To Reduce Insurance Rates As Important As Lowering Gas Prices

The federal government made investing in increased development of the Alberta oilsands a top priority for the future of the Canadian economy.  One of the goals of increased oilsands investments is to help reduce the cost of gasoline for Canadian drivers, who are paying rates that average around 40 percent more than drivers in the US. That’s particularly true for Eastern Canada where oil is imported at Brent pricing.

2017 could see up to 850,000 bopd pipelined from Alberta to Quebec and New Brunswick resulting in a triple win scenario for oil producers, refiners and consumers. White this oil is expected to eliminate imports, surplus volume might even end up getting exported to buyers overseas at world pricing.

While Ottawa and the Alberta governments are committed to investing in the oilsands which could reduce gas prices, there is little government incentive towards reducing car insurance rates for drivers.  The cost to fill up gas at the pumps nearly doubled in comparison to the average cost a decade ago, and there appears to be no relief in sight.

At the same time, drivers were forced to accept higher insurance rates alongside accelerating gas prices.  Canadians are protesting to their political representatives and their insurance companies that the cost of car insurance is too unaffordable.  In Ontario for example, a proposal to reduce car insurance rates by 15 percent nearly took the province into its second election in less than two years.

Many drivers are turning to online insurance comparison sites to find more affordable insurance options than their current providers.  These websites function as convenient one-stop shop comparison pages, where drivers can compare the best advertised insurance rates from companies all across Canada.  Some of these companies are smaller, less-known businesses yet offer better insurance rates than their larger counterparts.  As a result, drivers can often find a more affordable car insurance plan by spending only a few minutes on the internet.

The cost to drive in Canada is growing year over year, and more people today are focused on reducing the cost to travel than ever before.  The government is right to invest in streamlined oilsands development, but should also commit to reducing the cost for Canadians to legally drive.