Ontario Car Insurance in 2020: What’s Happening with Rates?

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Auto insurance rates to increase an average 1.56% 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 Regulatory Authority of Ontario (FSRA) and each quarter, FSRA 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 in 2020

FSRA reports that in the fourth quarter (Q4) of 2019, approved rates increased on average 1.56%. 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 only slightly, 0.02%, while others could see their rates increase as much as 11.05%. It all depends on who you have your coverage through, and the rate change your insurer has been given the green light to apply.

In total, 21 insurers had rate changes approved representing 40% of the market based on premium volume. The vast majority of these rate increases come into effect in 2020.

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Which Ontario auto insurance companies are changing their rates?

Insurer Market Share (%) Approved Average Rate Change 2020 (%)
Allstate Insurance Company of Canada (1) 5.35 0.00
Allstate Insurance Company of Canada 5.35 0.02
Aviva General Insurance Company 4.92 3.99
CAA Insurance Company 1.58 3.95
Continental Casualty Company 0.00 8.09
Co-operators General Insurance Company 5.52 0.00
COSECO Insurance Company 1.35 10.12
Echelon Insurance (1) 0.92 0.00
Echelon Insurance 0.92 5.00
Farm Mutual Reinsurance Plan Inc. (on behalf of Ontario Mutuals) 1.78 4.80
Gore Mutual Insurance Company 1.50 4.97
Guarantee Company of North America, The 0.62 7.54
Intact Insurance Company 8.09 5.00
Jevco Insurance Company 0.65 6.00
Northbridge General Insurance Corporation 0.73 0.48
Novex Insurance Company 1.00 5.00
Royal & SunAlliance Insurance Company of Canada 1.09 5.00
Scottish & York Insurance Co. Limited 1.12 11.05
SGI CANADA Insurance Services Ltd. 0.37 9.99
Traders General Insurance Company 1.61 5.62
Unica Insurance Inc. 0.55 4.78
Western Assurance Company 1.15 5.00
Zenith Insurance Company 0.48 4.93

The rate changes denoted with a (1) is a Canadian Loss Experience Automobile Rating (CLEAR) update. This means there is a particular vehicle, or group of vehicles, where pricing has been adjusted to better reflect the vehicle’s likelihood of an insurance claim and/or claims cost.

Ontario’s Approved Auto Insurance Rate Changes to 2020 since 2015

For more than two years now, Ontario auto insurance rates have increased every quarter. Last quarter, approved rates increased on average 2.60%. As reported by FSRA in their quarterly publication, auto insurance rates in Ontario have been trending upwards for some time.

A chart showing how approved auto insurance rates have increased over the last few years.

When rates are rising, as they have been, it’s especially prudent that Ontario drivers heed FSRA’s advice to “shop around for auto insurance.”

FSRA to Monitor Claims Costs in Ontario

FSRA continues to note two trends that may be affecting auto insurance rates in Ontario which they plan to keep an eye on: increased claims costs for repairing technologically advanced vehicles, as well as more collisions due to distracted driving.

Find Your Best Rate at InsuranceHotline.com

FSRA 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 FSRA announcement results.