Ontario’s Rate Reduction Plan: How You Can Take Advantage NowJanuary 17, 2014
January is a month when most of us are looking to save a little money, and Ontario drivers have some rate reductions to look forward to when it comes to car insurance. After plenty of talk, the 15% rate reduction that has been promised over the next two years is finally under way. January 2014 marks the date that the Financial Services Commission of Ontario has promised a report showing that car insurance rates are on the decline. That means this month is a good time to start looking at your car insurance bill.
What’s New For January?
The plan to bring rates down isn’t expected to reach the full 15%, but a few months back drivers were told they could look to save between 3-5% come January. The good news is that some insurance companies have already started to bring rates down. There are still plenty of issues including fraud and how claims are handled that are being worked out in order to get rates down even further, but there’s no reason you can’t get a little help with the monthly budget right now.
The Financial Services Commission of Ontario says they’ve already started meetings with representatives in a variety of areas, including the towing industry, insurance companies, and legal areas including policing. Those meetings starting in December and will continue as the changes are worked out.
Almost half of the recommendations from the Anti-Fraud Task Force have already seen action, which is one of the big areas the government has been looking at to bring about those rate reductions.
How Can You Save Money?
Government meetings and action are a step in the right direction, but you’re probably more interested in how you can actually see a change in your monthly payments. What can you do to see some results on your insurance bill?
The Financial Services Commission of Ontario hasn’t filed the quarterly rate approval for the final quarter of 2013, but that doesn’t mean you can’t get a better rate! Many insurance companies have already brought their rates down, and there’s only one way to find out how much you could save. Rates on your current policy won’t drop until your renewal even if your insurance company has made changes, so to get some budget relief right now take the time to shop around.
Comparing Car Insurance Rates
Shopping for car insurance isn’t high on most people’s list of enjoyable activities, but it doesn’t have to be unpleasant or time-consuming. If you haven’t use an online rate comparison service before, now is a great time to give it a try. Comparing rates online makes shopping for car insurance easier in a number of ways. It lets you get more than one quote all at the same time, and it’s low pressure because you aren’t on the phone talking to someone who is looking to sell you a policy. You’ll only have to enter your information once, and then you can take your time looking over the options.
Of course, the bottom line is the cost savings; after all, that’s the point of taking advantage of a rate reduction. When you’re comparing rates, however, make sure you take into account the reputation of the insurance company and the service you’re looking for. You’ll also want to be sure that the lower rate still offers you the same coverage. It’s not much of a good deal if you have to sacrifice coverage in order to get a lower rate.
Should You Wait For Renewal?
Most people are going to see their rates go down when their renewal comes through, so it can seem like a good idea to wait and see what happens when your policy renews rather than switching insurance companies. Whether or not you should wait depends on a few things.
First of all, you should check on any penalties your insurance company might have for early cancellation. You should also see what kind of new policy fees are involved in a new policy. If you’re getting close to renewal, it might be worth it to wait, but if you have a lot of time left before renewal, your savings could be considerable when you switch early.
Shopping around for car insurance, especially online, doesn’t mean that you have to switch. Since getting quotes comes with no obligation, it can’t hurt to check what’s available. With the new rate changes for January, you might find a deal you can’t refuse, and you won’t be able to take advantage of those reductions now unless you take the time to shop around.