Insurance premiums in Ontario may be affected by for profit clinics
Ontario is home to the highest auto insurance premiums in Canada, and rates for many drivers continue to rise, even if they have immaculate driving records. There are many factors that affect the cost of insurance coverage, but for-profit medical centers and rehabilitation clinics may be one of the reasons why premiums are on the rise. Notably, bodily injury claims in Ontario are significantly higher than they are in other provinces, perhaps due to the over-utilization of medical services and over-treatment.
Bodily injury claims are more expensive in Ontario than anywhere else in Canada
According to the General Insurance Statistical Agency, bodily injury claims in Ontario were at $143,630 in 2014. By comparison, these claims in Alberta were only $12,723. Benefit payouts were also significantly higher in Ontario, coming in at more than $31,000. On average, there are approximately 85,000 claims regarding accidents that have caused bodily injury in the province. The majority of these claims have to do with minor sprains and whiplash.
For profit clinics may be having a major impact on insurance costs
There are more than 9,600 for profit medical clinics in Ontario and nearly 31,500 individual care providers registered in the province. While for-profit clinics are not dubious organizations, there may be an incentive that exists that encourages care providers and receivers to over-treat and over-assess injuries associated with car accidents. These injuries are generally covered by insurance companies, whom will cover the cost of medical care in many cases.
Ontario has fewer car accidents than other provinces, yet higher insurance premiums
One of the concerning issues about auto insurance premiums in Ontario is the fact that the province is home to the lowest per capita rate of vehicle accidents and death in Canada. Relatively few car accidents occur in the province when compared to the accident rates in other parts of Canada. According to a report from KPMG, a professional services firm, the average accident-benefits claim cost increased by 174% from 2001 to 2010. The inflation in claims is largely due to over-utilization of medical care.