In 2011, Ontario's auto insurance industry made $3.5 billion in profit (not revenue, profit). This is $3.5 billion of our money that is going to line the pockets of insurance companies, with the public seeing no benefit from it.
A possible tool for revenue generation would be to create a public auto insurance option, with premiums 10% lower than the current market rate.
If this option gets 20% marketshare, that would mean $630 million available for transit and road infrastructure expansion. 40% marketshare would mean $1.26 billion. This could represent a substantial portion of the yearly funding requirements in order to get the Big Move off the drawing board.
Imagine paying less than you are now, for a service that you're already paying for, and having that money go back into building new infrastructure that you and others can use. It's an infrastructure funding solution that doesn't rely on raising existing taxes or user fees, or creating new taxes or user fees. It's money people are already paying.
Just some food for thought.
A possible tool for revenue generation would be to create a public auto insurance option, with premiums 10% lower than the current market rate.
If this option gets 20% marketshare, that would mean $630 million available for transit and road infrastructure expansion. 40% marketshare would mean $1.26 billion. This could represent a substantial portion of the yearly funding requirements in order to get the Big Move off the drawing board.
Imagine paying less than you are now, for a service that you're already paying for, and having that money go back into building new infrastructure that you and others can use. It's an infrastructure funding solution that doesn't rely on raising existing taxes or user fees, or creating new taxes or user fees. It's money people are already paying.
Just some food for thought.