Ontario Car Insurance Rates to Decrease

October 17, 2017

Ontario Car Insurance Rates to DecreaseAccording to the Financial Services Commission of Ontario (FSCO), Ontario auto insurance rates will decrease on average by 0.1 per cent.

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.

In the third quarter of 2017, the rate changes FSCO approved amount to an average decrease of 0.1 per cent. However, this quarter’s decrease comes on the heels of two consecutive quarters where approved auto insurance rates increased.

Will everyone see lower car insurance rates?

Not necessarily. Given that these rate changes are an “average” affected drivers may see a bigger decrease, an increase, or no change at all. In fact, according to FSCO’s quarterly rate approval release, some drivers could see a decrease in the premiums they pay of 8.9 per cent, while others could see an increase of 5.9 per cent.

“An individual policyholder may experience a rate change that is either higher or lower than the industry-wide average rate change, or the average rate change for a particular insurer, depending on several factors,” says FSCO. These factors may include: the vehicle you drive, where you live, your driving and insurance history, as well as coverage options chosen, to name a few.

As a result, FSCO encourages consumers to shop around. It’s sage advice, because not only do premiums often change, but a lot can happen to you personally in the space of a year that can impact your car insurance rates:

  • You get married: You may find that the company who provided you the best rate as a single person may not be the same company that provides you the best rate as a couple.
  • You move: Where you live factors into what you pay, and chances are your premiums will change when you move.
  • You buy a new car: New or used, what you park in your driveway is one of the key factors in calculating your car insurance rate.
  • Your teen gets their driver’s licence: Some insurers are more teen-friendly than others, and if you have a new driver in your household it’s worth checking to see if another insurer will give you a better rate.
  • You get a ticket or are involved in an at-fault accident: Accidents and tickets happen to even the best drivers, and some insurance companies are more forgiving than others.
  • You change jobs or retire: When your daily commute changes, your insurance could change as well. Where you drive and how much daily driving you do can impact your insurance.

Shop around for the best price and best coverage

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.