The Ontario government has announced a package of reforms that it says will reduce auto insurance costs and allow savings to be passed on to motorists.

Featured among the cost reduction initiatives is the establishment of maximum fees that Designated Assessment Centres can charge to insurance companies. DACs assess accident victims when there is a dispute between insurers and accident victims about the extent of injuries and treatment plans.

The government is also introducing new regulations to help contain costs

In addition, the government will be increasing the maximum hourly rate for health care providers who treat the most seriously injured.

Insurance companies are required to re-file their private passenger vehicle rates by January 23 for review by the Superintendent of the Financial Services Commission of Ontario. Insurance companies must reflect cost savings in these new rates.

Also, the finance minister, Greg Sorbara, has asked his parliamentary assistant, Mike Colle, to bring forward measures that will better protect and inform consumers.

“Our reforms must look to the long-term as well as the short-term,” said Sorbara. “We will continue to work towards additional steps that lower rates, cut insurance costs and increase consumer protection and education, within a competitive marketplace.”