A 50% increase in insurance for taxi companies and drivers ... When are governments across Canada going rein-in these out-of-control insurance companies?!

Taxi companies brace for rough ride on insurance rates

Taxi companies and their drivers in the province [Newfoundland and Labrador] are bracing for a second big increase in insurance premiums in as many years.

At least one St. John's business says it's been notified that an application for a 50 per cent increase in insurance premiums is before the Public Utilities Board.

That would be on top of a similar 50 per cent increase approved by the PUB last year.

Up until then, there had not been an increase in liability rates since the mid-1990s.

Still, cab companies say the double-whammy in back to back years is too much to bear.

"It's understandable ... that things go up and things have to change," said Doug McCarthy, general manager of Co-Op Taxi and a member of the St. John's Taxi Committee. "But it's got to stop some place. At this rate, they're going to drive taxis out of business."

McCarthy says he understands rates are set to cover Facility's expenses, which begs the question why they want such a large increase now.

"Because in talking to other companies, they haven't seen an overall increase in the amount of accidents that are occurring where taxis are at fault," he said. "I know with our company, we haven't had an at-fault accident in at least two years, if not three."

McCarthy also dismissed the idea that older vehicles are creating greater risk and liabilities.

"Most of the taxis out there are all well within the 10-year life cycle. Most cars on the road now are 2006, 2007 to 2009. And we have several 2013s and 2012s. So it's not the age of the fleet. So, why the second increase in two years? I don't know." ... More.

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What is that makes governments so reluctant to curtail insurance rates? It's not as if we're talking 'invisible hand' markets here. Ontario makes auto insurance a mandatory provision for licencing a car, and so it is not a take-or-leave-it proposition. Moreover, insurers in Ontario retain $0.61 cents on every dollar paid out in claims. So why are Greg Sousa (Minister of Finance for Ontario), and others, so reluctant to tackle insurance companies beyond lip service?

It is a question that remains open, even if consumers are bleeding money.

It is also a display of remarkable gutlessness!!