Ontario Car Insurance Rates Increase, for the Second Quarter in a RowJuly 28, 2017
Ready to pay a little more for your car insurance? According to the Financial Services Commission of Ontario (FSCO) some drivers will be seeing their rates increase the next time they renew their policy.
In Ontario, if an insurance company wants to change their auto insurance rates—up or down—they must first get approval from FSCO, a regulatory agency of the Ministry of Finance. Then quarterly, FSCO releases the results detailing which insurers were given approval to change their rates and by how much.
The latest results are out and approved rates increased on average by 0.76 per cent. Last quarter, auto insurance rates also increased, on average 1.24 per cent.
Car insurance going up? Ways to lower your premiums.
Even though car insurance premiums appear to be on the rise, there are ways to save and we’ve rounded up five money-saving tips to help you get started.
- Bundle it
Do you have your home insurance and car insurance with the same company? If not, you could be missing out on savings of five to 15 per cent off one or both of your policies.
- Increase your deductibles
The basic rule of thumb is the higher your deductibles, the lower your insurance premiums. If you switch from a $500 deductible to a $1000 deductible you can save anywhere between five and 10 per cent. This is a slam dunk for safe drivers with a clean and consistent driving record.
- Ask about discounts
There may be opportunities to save money that you didn’t know existed, and that your provider didn’t know to offer you. For example, if your young driver is away at college or university, some insurers offer a “Student Away At School Discount” that could save you up to 50 per cent of the cost of having them listed on your policy.
- Pay your premium all at once, instead of monthly
While it is convenient to pay your premiums monthly, the convenience comes at a cost as many companies charge a little extra to cover the cost of administering monthly payments. If you can afford to pay your premium annually—in one lump sum—then you’ll likely pay less for your coverage in the long run.
- Let your insurer know you change your tires seasonally
Many drivers nowadays switch to winter tires when the cold sets in. If you change your tires seasonally, let your insurer know to save up to five per cent off a portion of your premiums. All insurers offer this discount in Ontario, since it was mandated back in January 2016.
Shop around for the best price and best coverage
The single most important factor in lowering your car insurance rate and getting the best coverage for your needs is to shop around. In fact, FSCO encourages it.
“Consumers are urged to shop around for auto insurance,” says FSCO in its quarterly statement. “Ontario has a very competitive marketplace. Rates for the same coverage vary based on each insurer’s claims experience and the insurer’s rating system.”
Car insurance is like any other product or service you buy: to get the best deals you have to comparison shop. If it’s been a while since you last put you premiums to the test, chances are you’re overpaying. Compare auto insurance quotes today for a better price at ComparaSave.com.