NDP Leader Andrea Horwath is promising to drive down auto insurance costs for Ontarians, who pay some of the highest rates in the country.

"Auto insurance costs are unfair in Ontario. We've known this for years and years," Horwath said.

"We have some of the lowest accident rates in the entire country, and yet we have the highest auto insurance premiums, we need to fix this," she continued.

It's an ambitious goal, and one that's eluded governments past. Former premier Kathleen Wynne promised a 15 per cent cut by 2015. In 2016, she admitted it was a "stretch goal."

"They couldn't get to 15 (per cent) because the insurance industry was in their pockets," Horwath said. "The difference between the NDP, and Liberals and Conservatives is they have really cozy relationships with the insurance industry."

The Progressive Conservatives tried to lower costs in their 2019 budget, and dedicated another section to the issue in their most recent budget — which also serves as their election platform.

"Ontario will be proceeding with additional measures to create choice, crack down on fraud and enhance fairness,” the document says.

Ontarians, however, still pay way more than neighbouring provinces.

Horwath's plan has three parts: ending "postal code discrimination" that sees drivers in certain locales paying more than others; an 18-month rate freeze; and an "auto insurance fair pricing commission" to study fundamental reforms to Ontario's regime.

The 18-month rate freeze and postal code promises would be done right away, should Horwath be premier, she said. The commission would also be struck right away and would be expected to report back on findings in 18 to 24 months, she said.

"We're going to do the work to determine which model works best for Ontarians to achieve the 40 per cent (reduction) and then we're going to immediately implement it, so it's going to take a little bit of time," Horwath said.

The commission would include insurance experts, affordability advocates and experts in public auto insurance from provinces that use such a system.

It would look into the merits of a full public no-fault insurance system, a hybrid public-private model, a private no-fault system, and legislative reforms aimed at reducing rates.

Horwath made the announcement in an auto repair shop in Brampton South. Drivers in Brampton pay some of the highest rates in the country, hence the "postal code discrimination" promise.

The riding is currently repped by Prabmeet Sakaria, who serves as President of the Treasury Board. In 2018 —the first time the riding was contested — he beat his NDP challenger by just over seven percentage points. He's primed for re-election come June 2nd, according to a recent Mainstreet Research poll.

READ MORE: PC's Prabmeet Sakaria headed for re-election in Brampton South

A 40 per cent reduction is a laudable goal, and a reasonable target, said David Marshall, a fellow with the C.D. Howe Institute.

Marshall, who served as an advisor to the Government of Ontario on auto insurance, said striking a commission to probe more fundamental changes is a good idea.

"The system needs fundamental reform. It needs to be approached in a systematic way. Governments have been derelict in not attending to it," he said.

Ending "postal code discrimination" and the 18-month rate freeze, however, aren't good policy, he said.

"These places have been proven to be more expensive. In those regions, like Brampton, there’s actuarial proof that there’s more claims coming out of those areas so insurance companies charge more," he said.

"Simply abolishing that process doesn’t reduce the cost, it just spreads it. Drivers in other parts will then cost subsidize the Brampton drivers."

Drivers in Brampton can opt to use telematics, a GPS tracker that is used to gauge how safe a driver you are, to lower rates, he said.

The 18 month freeze will also have ramifications throughout the industry, he said.

He pointed to a 2017 auto insurance cap instituted in Alberta, that stayed in place for two years.

"All that happened was insurance companies started writing less insurance in the province. It was harder to get. They were much more picky. In the end the government capitulated and they lifted the cap and prices went up again," he said.

"Price controls don’t solve anything, it just puts a lid on everything till the lid blows off again."

Horwath promises 40 per cent auto insurance price cut

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