Canadian auto insurance rates are going to cost some politicians jobs. Rates have increased (depending on where you live) from anywhere from 20-70% in one year. The insurance companies (they plead poverty but are the only ones aside from the banks who can afford the largest buildings in major cities) have been losing money in the stock market (like everyone else) and have decided to take it out on the insurance customers. People have been "driven" out of their cars because of this. But it looks like the hammer will fall soon, as most politicians are threatening the monopolistic insurance companies with forced reductions. But the insurance industry is getting a break. The governments are going to limit the rapidly increasing rates of accident claims, (what people can get for accident claims) insurance scams, etc. Lawsuits are up 50% in a couple years over accidents. Also, the auto companies are not innocent either. They have been raising the prices of replacement parts by more than 10% a year for the last few years as well as the labour charges they levy when doing body and drivetrain work.
What I'd like to know is, since everyone else seems to be aware there is no inflation to speak of, why do the insurance and auto companies pretend its 1979 and we have 13% inflation?
-Rich