What to Do About the New Ontario Auto Insurance Rate Increase

Chances are, you’ve already heard the news about the new Ontario Auto Insurance rate increase. Across the board, rates are increasing by an average of 1.56% – going as high as 11%. The Financial Services Regulatory Authority notes that insurers are pointing to “an increase in claims costs for repairing vehicles and…[the] growing concern related to distracted driving” for this new rate increase (Source.) Of course, this is disheartening and disappointing news for drivers in Ontario but it’s not necessarily the be-all and end-all when it comes to auto insurance. Here are some tips on making the best out of the new Ontario auto insurance increase:

Understanding Auto Insurance Rates

Before we dive into what to do with the new insurance rate increase, it’s important to understand what affects it in the first place. While there are discounts and tips to apply to your auto insurance, there are some factors simply out of your control.

Your auto insurance rate are affected by these key factors:

-The make, model and year of the car insured

-Where you live

-Your driving experience

-At-fault accident and conviction history

-Whether the car is used for pleasure, commuting or business

-Your choices on coverages purchased and deductible or liability limits

Learn more about how Home, Auto and Business Insurance premiums are calculated.

Similarly, how much your rate will increase depends on the insurance provider you’re with. Every insurer is different; the cost of coverage from one provider can vary to the other due to different rating systems and claim costs. This brings us to our first tip:

Shop Around

No one insurance company is the same! When every company has its own rates, systems and discounts, it’s extremely important to shop around instead of settling for the first option you receive or have been using for an extended period of time. The same way one would look at multiple homes or cars before making a final decision, it’s crucial to do some research and receive different quotes to ensure you’re getting the right coverage at the right price. Rates from your current provider becoming unaffordable is actually one of the common reasons why Canadians decide to shop around and switch auto insurance companies.

At Foxquilt, we partnered with several leading Canadian insurance providers so we can do the work for you. When you request a quote online from us, we shop around and find multiple options for you to review. This way, you can be sure you truly are getting an optimal price.

More tips to consider with the Ontario Auto Insurance increase:

Occasional Drivers

If you have an occasional driver under the age of twenty-five, let your broker know. For example, if your child is away at college, you may be eligible for a discount.

Winter Tires & Alarms

Not only does having winter tires on from November to April and having alarm systems enhance our safety, they can give us additional discounts too!

Driver Training

If you are a new driver or need to insure one, driver training is recommended. Not only does it actually benefit a new driver as they learn to drive, but it can show some proof of experience which can help with auto insurance rates.

Bundling Home & Auto

At Foxquilt and other companies, you can bundle your home or renters insurance with your auto insurance to receive discounts. It can also be more convenient and less paperwork to only have to focus on one provider. Similarly, you can also bundle snow toys like four wheelers, motorbikes and multiple vehicles for discounts too.

No one wants to hear that Ontario has an Auto Insurance increase first thing in the new year but it’s also not the end of the world! There are several discounts that may apply to your situation; the biggest takeaway though is to shop around. Let Foxquilt and our insurance experts do the work for you; we’ll shop around and do the research to find the right coverage at the right price for your situation.

Get a Quote