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Car Insurance in Ontario: What’s Happening with Rates?

January 11, 2019

Car Insurance in Ontario: What’s Happening with Rates?Auto insurance rates to increase an average 3.35 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 drivers in the province.

Ontario auto insurance rates are set to increase

FSCO reports that in the fourth quarter (Q4) of 2018, approved rates increased on average 3.35 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 1.65 per cent, while others could see their rates increase as much as 34.87 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 23 insurers who had rate changes approved this quarter, not one lowered their rates.

A recent history of Ontario’s auto insurance rates

This is the fifth time in a row that rates have increased. In Q3, auto insurance rates increased 2.06 per cent on average, in Q2 they increased 1.11 per cent, in Q1 2.23 per cent, and in Q4 2017 they increased 1.03 per cent. In fact, over the course of the last two years, Ontario auto insurance rates have increased every quarter except one (Q3 2017) when rates decreased on average 0.1 per cent.

With more than full year of consecutive 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 Canada-wide increase in premiums.

Could changes be coming to Ontario auto insurance?

Ontario auto insurance rates have been increasing for a while now, so it’s no surprise the government’s 2018 Ontario Economic Outlook and Fiscal Review (released in November) included plans to address auto insurance in the province. Specifically, the province says they set out to:

  • Debate whether where a person lives should factor into the auto insurance rate they pay.
  • Conduct a review of how auto insurance rates are regulated to potentially identify opportunities for increased efficiencies and competition in the industry.
  • Create a regulatory framework that will foster innovation in the industry. Electronic proof of insurance, usage-based insurance technologies, as well as full electronic commerce capabilities, are mentioned.

Find your best price at InsuranceHotline.com

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 and budget.

This article is updated quarterly to reflect the latest FSCO announcement results.

  • mikeIH

    Keep them dropping!

  • thdvl

    This site gave me a quote of almost triple the price I do pay, I’ve tried with the competition as well. These go to sites are for the lazy and unaware

  • Omer

    insurance rates are not fair at the moment. Insurance companies are not doing justice with customers.


    I am a senior citizen of 80 with almost 25 years of neat and clean driving record. with god’s grace no accident, no suspension of license etc. my rates increase every year with increase in my age. I started with $100 of comprehensive insurance it is more than 220 and even more that. I am told that due to maximum number of accidents and thefts in Brampton, I have to share the cost. that is no logic. why should I pay for somebody’s fault. secondly, the insurance rates in Ontario re the highest in the country. Can somebody’ help a senior like me with clean record of driving.

  • Mei

    We renewed our auto and home insurances in June. Our rates were up for the coming year; contrary to what was expected.

  • Roz

    my rates have increased annually and I am a so-called “preferred” driver. It is a rip off and despite being with the same insurer for years I will be changing in the future. The Ontario Government kowtows to the IBC and keeps Ontario rates high by not going the same route as Quebec .

  • drake

    I’m a free market libertarian but even I can see that the public system in BC is better than the private system in Ontario. The insurance industry in Ontario is a cartel, not a competitive industry.

  • Jalen

    Ontario’s system is not truly private since it is overseen by the Financial Services Commission of Ontario which approves rates,meaning FSCO runs the show while these companies provide it revenue. .Hence these companies compete to please the Govt ,to stay in business,and not the customer.

  • Paul

    Maybe consider moving, or shopping around? when you have the best driving record, inflation and other factors affect your premium unfortunately, because your driving record cannot become better than the best.

  • David Miles

    Same boat. A year and a half ago I went from a 2011 Mustang Shelby GT500 to a 2010 Mustang V6, a year older and 1/4 of the hp. My rate didn’t change but went up and it went up again when my sixth month
    billing came in August.

  • Jerry

    I just received my renewal notice. I am also a senior “preferred driver”and have NEVER had an accident or claim and with the same company for years. My House premium increased by 6.5% and my car premium 4.2%.
    What a rip off.

  • Anon

    If you’re with a broker and they deal with multiple companies, call them up and get a full quote sheet of what every company they deal with will offer. They can usually generate 10 to 12 companies, but most brokers rarely do it for customers unless they’re asked to. For example, my sister was sent her renewal notice two weeks ago and her rates went up, despite having a perfect record. We saw on the broker’s website that they dealt with nine companies and we asked him to get quotes from all nine. It turns out the renewal she got was the most expensive and the other eight were significantly cheaper. Just by making that one phone call, it helped her save about $300 in the coming year in car insurance.
    It’s extremely important to call, or use company’s online quote system, to get the best rates.

  • Raj Brar

    Trust me, you don’t want IBC’s style insurance



  • anon

    Lucky you! I’m a senior. Just got my renewal. Still have perfect driving record, same non GTA location, BUT my rate just went up 18.77% !!!! What happened to Wynn’s promise of a 16% across the board reduction? Sounding more like our hydro increases every year #@$%^&*?

  • InsuredButAngry

    Just got a letter from TD with an increase of 25.66% for this year. No reason – just long time customers that pay on schedule, no accidents or claims…

  • insurer

    I just got renewal notice from RBC and they increased premium, 20%, no fault no nothing, they say the ratings changed … amazing

  • Jim Burrows

    With 212% increases in motorcycle insurance in Ontario from one year to the next, no one can tell me that there is nothing going on!! We are told that if we don’t like it, shop around. Shopping for insurance TAKES TIME!! I cannot easily take hours out of my day to shop for insurance just because of INSANE price increases. Yes, i understand that if you don’t want someone as a client simply raise the rates so that it is totally unacceptable and hopefully they will go somewhere else. I would like to know…where is the OIC (Ontario Insurance Commission)? What do they think?? Do they know that 200% increases are even happening? What are they prepared to do about it? How about Kathleen Wynne? What is she doing about it? Does SHE care?? I would like someone in authority get back to me with a reasonable and logical explanation. My Email is.. Jimburrows@email.com Thank you. P.S. This email will be copied and sent to other sources as well.

  • Stephane

    Belair direct quoted me this year with an increase of over 25% compared to last year ! Our situation has not changed, no accident, no fines, same vehicles…. They mentioned it was due to the area, and we did not move at all, same house, exactly the same!!! This in unbelievable!

  • Joseph

    I just received my new auto policy for renewal June 1, incorporating all the new changes for the supposed government imposed price reductions – what a joke! Coverage is reduced (deductible increased from $250 to 500, and medical coverage reduced from $2M to $1M), and my annual cost has Increased from $600 to 650.

  • Alex2

    Where do you get coverage for $650?

  • Alex2

    Someone who is jobless can make it their job to shop around for quotes as of June 2016. Very valuable for customers who might consider changing insurers mid renewal period to save some money. Remember most insurers will charge $50 cancellation fee so if they can find savings that would justify their fee plus $50 then everybody wins. Trouble is that typical brokers are not really brokers and only place with a few companies.

  • Andrey

    I’m at AllState and just got mail with new insurance for the house. It was increased from $53 / months to $67 / month. I never seen any decrease from any insurance companies ever. Every year it going up. My car insurance was $300 / month (with 2 minor tickets). Last year all ticket were gone (3 years) and I expected discount but my insurance $350 / month now (without any tickets). AllState told that my area was not safe like it was before. “Auto insurance rates are to decrease, on average, 3.07 per cent.” – not true. I called AllState to calculate cheapest Insurance I can get including all possible discounts and excluding all possible options from June 1 and as a result I got increase from $350 to $370 / month. And where is 3.07% discount? I think it was a misspelling. “Auto insurance rates are to Increase, on average, 3.07 per cent.” – this is correct statement.

  • Jake

    I really don’t understand the whole thing. My insurance broker and everyone talks about how Ontario driver’s license is being changed and dropping rates and such, but the reality is that everyone seems to be getting higher premium compare to 2015. What is happening?

  • CB

    Insurance companies don’t lose money. They make a ton of money. The executives who run these big insurance companies are sharks. They know how to game the system to their own benefit. The politicians are like intellectual pipsqueeks compared to these crooks. They are the fancy suit, BMW driving equivalent of the Hell’s Angels – no difference. They have the politicians running around chasing their tails while the rest of us get screwed royally.

  • Sparky Mahoney

    Bullshit! Ontario has the highest rates in Canada by 2x – 3x as much as the rest of the country and for no other reason than pure profit for the insurers and the kickbacks they give to the Libs and Cons. Seeing as car insurance is mandated than it should be handled nationwide by the federal government as not-for-profit. Otherwise this is just more continuation of Canada’s War on the Poor.

    And how the hell are multi-line discounts legal? Again, antoher discrimatory practice against the poor in this country!

  • Natalie MJ Fitzerale

    People need to get organized. We need to pool our money together and create our own auto insurance company that offers fair rates. I’m talking CHEAP. No more than $115 a month! No one pays these rates in the states! We need to get organized!!!!

  • Shirley

    Exactly what happened to us with Belair Direct. Last year the premium for the collision portion for our truck was $67, this year $143! More than doubled! When I called, they said the exact same thing, it’s the area which you live in, because there must be alot of claims in that area. Is this not a ripoff?

  • Cornelio

    I have my auto insurance with Wawanesa. The benefits went down by 50% and the premium went up by 30%! This was in response to the Government efforts to lover the premiums.
    Who do we take this with?

  • InsuranceHotline

    you should speak with your insurance broker to see if you have adequate coverage.

  • guillaume2010

    I’m on here trying to educate myself about the auto insurance reform and get a sense of what others pay for their insurance. Mine is up for renewal in August but the premium is suspiciously the same as last year if my memory works, at $635/year, despite the reform. I suspect I was enrolled for some new coverage I don’t need, so I’m hoping to cut my premium further. If what you propose will beat $500/year, then I’m in.

  • EdB

    Same with me . I found my renewal policy with Belair had an increase of approx. $200 over the previous year. called to let them know I wouldn’t renew and they asked if there was anything they could do to keep me as a customer.
    Told the rep they should have thought of this prior to sending out the renewal advice. Despite their high power TV ads, I have changed my company.

  • InsuranceHotline

    you should ask your broker or your company for the underwriting guideline for the coverage.

  • Norb

    It is ALL LIBERAL LIES!!!! I JUST got a letter from my insurance company stating that due to the provincial government’s finagling, my premiums have INCREASED!!!! These flimflam specialists have GOT to be punted!!! They should be “TARRED AND FEATHERED AND RIDDEN OUT ON A RAIL”!!!!

  • William Mackenzie Lamb

    I am attempting to make a video re: insurance increase. Can you send me some of your findings. williammackenzielamb@gmail.com

  • mdroy

    something wrong there. I came from Manitoba 1990. My rates were less than half in MB compared to ON. I don’t honestly know what has changed there. They were run on a not for profit plan for as long as they were single payer AKA Autopac. Ontario insurance rates are piracy. Full stop.

  • Dave_S

    Exactly, it is legalized CRIME

  • Kenneth Singh

    This is f…..g crazy. I was insured since 1978 and my premium was reduced yearly because of no claim. The insurance companies are just the same as the banks. They are two f…king thieves.

  • musician7w

    What a crock. .1% I have never seen a discount on my insurance over the last 5 years inspite of the misleading marketing that we were getting more choices at less cost. It was only less coverage for the same or higher cost. You guys should do better articles about how Ontario has among the highest insurance rates in Canada if not North America and how the Ontario Insurance industry is screwing customers with the complicity of the Ont Liberal government. I suspect you are funded by the Insurance Industry so you won’t utter a peep about this. If it wasn’t an incompetent Liberal government in power I would be calling for government insurance.

  • John Hart


  • Skeletor

    I think that guy must have insured a mountain bike.

  • Skeletor

    Did I see correctly that eSurance was approved for a 12% reduction?


    Any one use them?

  • Pierre Cliche

    The insurance scam is like a pyramid b.s. members pay to join, the brokers pay the company then we pay the cost of operation for the broker.
    All they care is the size of their pie and us idiots pay for it all.

    What a terrible system. No wonder we pay the most of any province for car insurance

  • Ken Moss

    I just received my auto renewal from Belair Direct. I am a retiree living in Bobcaygeon Ontario. I am rated 10 years claims free with no convictions. My renewal premium has increased by 25% and they have advised that they must increase my Collision and Comprehensive deductible from $500 to $1,000. Usually when a deductible is raised your rates should go down. I checked my Collision & Comp rates and they are up substantially. I called the representative at Belair and asked why this was happening and all they told me is that they had a meeting with their managers and they were told that all their rates had to go up???? Is this the way you should treat your so called preferred best drivers (Customers) ???

  • InsuranceHotline

    Sounds like a perfect time for you to shop around for a new policy. Our site, http://www.insurancehotline.com can provide you with multiple quotes in less than 10 minutes

  • Dave Walton

    The insurance in Manitoba when I lived in Brandon was run by the provincial government which at the time was the NDP in the early 70′s and was very reasonable compared to Ontario . Now I live in Barrie on and my rates are higher than they were in North York in Toronto and I was a courier now i’m retired and my rates are still out of line and it is because of postal codes

  • Dmytro Bryushkov

    The best way to lower our MV insurances would be to use the same system as in Quebec, where insurances are much lower than in Ontario.

  • kimberly capes

    I have just received my insurance renewal for 2019 and rates have increased 15%. My driving record is very clean and clear from any tickets or traffic violations. There was no notification from The Personal as to why this increase. I called and they stated geographical. I live in a city of 75,000. Not a happy girl as I stated to my insurance company and they basically said we have no control. What can be done about this if anything?

  • InsuranceHotline

    Your best bet is to shop around for a better rate. You can check http://www.insurancehotline.com

  • Niki

    Sure! And, to be protected by frauds (which would of course happen), instead of raising the rates, our “popular insurance company” would have one simple cheap requirements: Wanna be insured with us? Gotta install a PERMANENT double dashcam recorder (both front and back) in your car. All the time. With random checks in which, if caught any time without fully working dash cam, contract is dissolved and you don’t get insured anymore. PROBLEM SOLVED. So simple.

    I can predict the objections: what if my dash cam broke and I’m simply going to the store to buy a new one? Simple solution.
    You gotta have 2 backup dash cams in your car, all the time.

    As soon as one of the two cams (front and/or rear) breaks, you have a cell phone number of the insurance company to contact and/or text and/or an email to inform the company IMMEDIATELY that this day, at this time, in this place, you detected the malfunction. Then, you have to immediately replace it/them with the backup(s) cam(s) and you have 48 hours to buy 2 new backups.

    I can predict the next objection: how much money do we have to spend?
    The answer to the objection is even simpler: u kidding? With the money you save on only ONE MONTH insurance premium going down from the shameful Ontario-like prices of 400, 500, or even 600 per month to 100 per month, you can buy:
    • front dashcam
    • back dashcam
    • 2 backup dashcams
    • maybe even a professional 4K Hollywood-level audio-video system with a living clone of Director Ridley Scott for free

    And that’s only a ONE MONTH cost. If you consider a whole year-sized saving, or the money you’d save for say 5 or 10 years, you can buy the a Theater.

  • Martin S. Powell

    How much were you paying? I live just north of Dundas and Bloor.thanks.

  • Martin S. Powell

    Is ther a place to check rates by postal code? Thanks

  • InsuranceHotline

    You can check Kanetix.ca (our sister site) insuramap. Here’s the link https://www.kanetix.ca/insuramap

  • K

    they closed up shop because they were losing too much money (they are a subsidiary of All State which is still in Canada). Ontario’s system is broken, on average $250-$400 of your auto premium goes to cover fraud that the police and regulator (FSCO) have clearly not made a priority to enforce against