The False Promise of Government Auto Insurance

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This study estimates and compares the average cost of personal passenger automobile insurance premiums in each of the 10 Canadian provinces for the years 2004 and 2005. Other studies have examined the price of auto insurance by selectively comparing individual cases across provinces. (CAC, 2003) It is often mistakenly believed that such comparisons reflect actual average premiums in each province. This error can lead to false conclusions regarding the relative cost of auto insurance. The purpose of this analysis is to clear up such misconceptions.

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