Auto insurance rates to increase 1.11 per cent in Ontario.
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 second quarter of 2018, approved rates increased on average 1.11 per cent. While this increase reflects the average drivers may see upon renewal, the actual range in rates approved is significant: some Ontario drivers could benefit from a decrease in the premiums they pay of about 0.69 per cent, while others could see their rates increase as much as 8.15 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.
This is the third quarter in a row that rates have increased. Last quarter, auto insurance rates increased 2.23 per cent on average, and the quarter before that they increased 1.03 per cent. With three consecutive quarters of approved rate increases, 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 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 trending upwards, it’s likely Ontario’s new premier will be monitoring what’s going on too. Although it was not a prominent election issue, now that rates have increased again, Premier Ford will likely have to formulate a plan (if he hasn’t already) to help drivers keep their auto insurance rates affordable.
Shop around for the best price and best coverage
FSCO encourages consumers to shop around for their Ontario car insurance coverage and on that front InsuranceHotline.com can help. Compare car insurance quotes today; it’s the best way to lower your car insurance rate and find a policy that fits your needs best.
This article is updated quarterly to reflect the latest FSCO announcement results.