Auto insurance rates to increase an average 2.06 per cent in Ontario, with many drivers seeing increases that are significantly higher.
In Ontario, every insurance company must have changes to their auto insurance rates approved by the Financial Services Commission of Ontario (FSCO) and each quarter, FSCO publishes these rate changes. The latest rate changes have been released and, as expected, it’s not good news for Ontario drivers.
FSCO reports that in the third quarter (Q3) of 2018, approved rates increased on average 2.06 per cent. While this increase reflects the average drivers may see upon renewal, the actual range in approved rate increases is significant: some Ontario drivers could see their rates increase 2.5 per cent, while others could see their rates increase as much as 11.6 per cent. It all depends on who you have your coverage through and the rate change your insurer has been given the green light to apply.
Of the 20 insurers who had rate changes approved this quarter, not one lowered their rates.
This is the fourth time in a row that rates have increased. In Q2, auto insurance rates increased 1.11 per cent on average, in Q1 they increased 2.23 per cent, and in Q4 2017 they increased 1.03 per cent. With a full year of approved rate increases on the books, it’s especially prudent that Ontario drivers heed FSCO’s advice to “shop around for auto insurance.”
FSCO to monitor claims costs in Ontario
In its quarterly rate publication, FSCO noted two trends that may be affecting auto insurance rates in Ontario which they plan to continue to monitor: increased claims costs for repairing technologically advanced vehicles, as well as more collisions due to distracted driving. Both have previously been cited as being a driving force behind the expectation that premiums will increase, Canada-wide, in 2018.
With auto insurance rates continuing to trend upwards, the province’s premier will likely have to address the issue soon. Following FSCO’s announcement, the NDP’s Gurratan Singh and the PC’s Parm Gill announced plans to table legislation, separately, that would possibly end auto insurance pricing that takes into consideration where you live. The issue of rising auto insurance rates is about to become front and centre at Queen’s Park.
Shop around for the best price and best coverage
FSCO encourages consumers to shop around for their Ontario car insurance coverage and you can do this easily online at InsuranceHotline.com. Compare car insurance quotes today as it’s the best way to lower your car insurance rate and find a policy that fits your needs.
This article is updated quarterly to reflect the latest FSCO announcement results.