Ontario drivers have overpaid up to $4 billion in auto insurance, new study finds

TORONTO -- Ontario drivers may have overpaid billions of dollars in insurance because a profit benchmark for the industry is set way too high by Ontario's regulator, a new study has found. 

Consumers likely overpaid by $3 to $4 billion between 2001 and 2013 -- $840 million in 2013 alone -- according to the Schulich School of Business study commissioned by the Ontario Trial Lawyers Association.

The study pointed to the profit benchmark set by the Financial Services Commission of Ontario at 11 per cent return on equity as being too high. 

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