Published on 03.07.19
Newly Approved Auto Insurance Rates in Ontario See An Increase
If you drive and own a car in Ontario, you may not like this news. Auto insurance rates in Ontario are increasing by an average of 3.35%. This increase makes shopping around for auto insurance more pertinent than ever.
How Rates Increase
In Ontario, changes to auto insurance rates must be approved by the Financial Service Commission of Ontario (FSCO). Insurers file proposed amendments to their rates quarterly along with data to support the increase, or decrease in premiums for policyholders – this data identifies trends like where a company has experienced a change in claims cost for certain types of coverage (i.e. if there was a higher average cost of bodily injury claims).
FSCO reviews the insurers’ filing and determines if the proposed rates are not excessive, are just, and are reasonable. FSCO recently released the latest approved rate changes to impact motorists starting early 2019, and will once again have Ontario drivers paying more for insurance.
Increases as high at 16%
While FSCO reports that newly approved auto insurance rates in Ontario have increased overall policy prices by an average of 3.35 per (after filings from twenty-three insurers in Q4 of 2018), some policyholders could see their rates jump as much as 16.80 per cent.
On their website, FSCO urges policyholders to shop around for auto insurance as rate increases vary widely and are contingent on the insurer. “Ontario has a very competitive marketplace. Rates for the same coverage vary based on each insurer’s claims costs and the insurer’s rating system.”
This new increase isn’t all bad though! Increases in rates like this one encourages the government to face auto insurance costs and decreasing them head on. It urges them to explore decreasing rates by getting rid of discriminating drivers based on where they reside and modernizing the process of insurance. In the meantime, policyholders should search around for auto insurance for the best rate and price.
Foxquilt does exactly that; we put customers first by giving them better buying power and more product choices. Customers can choose the right product at the right time for the right price. We also allow customers to bundle their auto insurance with their home and business insurance