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What Does The 15% Auto Insurance Reduction Mean To You?

January 17, 2014

The government of Ontario has committed to a 15% total auto insurance rate reduction, with a target of an average 8% rate reduction by August 2014.

In a news release dated January 15th 2014, it was announced that according to the Minister of Finance, Ontario’s auto insurance rates have decreased 4.66% on average since August 2013.

“That progress is making auto insurance more affordable for Ontario drivers, and keeps the province on track for achieving the 15% reduction by August 2015,” states a Ministry of Finance press release.

“The Government’s approach to reforms appears to be working and auto insurance rates are continuing to fall. That’s good news for Ontario’s 9 million drivers,” said Ralph Palumbo, vice-president, Ontario, Insurance Bureau of Canada (IBC).

“Insurance companies are cutting rates and offering discounts to good, responsible drivers. That’s the direction we want rates to go,” said Palumbo. “The industry supports the Government’s crack down on fraud, and its hard look into other cost reduction initiatives, including provincial oversight of the towing industry and collision repair shops. Some insurers are also looking at adopting new technologies like usage-based insurance, which monitors the way you drive, linking it to the price you pay.”

Good drivers to see rate reduction with renewal

So what does this mean to the average Ontario driver? Good drivers should expect to see a rate reduction with their renewal but there are many factors that will determine that.

According to FSCO,

“The rate change shown for each insurance company is the average for that company, based on all the drivers it insures.”

An individual policyholder may experience a rate change that is either higher or lower than the average, depending on several factors, such as:

  • the vehicle insured
  • where he or she lives and other risk factors
  • choices made by the policyholder on coverages purchased and deductible or liability limits

Also, as most policyholders purchase annual policies, the rate change from the last renewal will also reflect any changes approved for the insurer in the last year.
Consumers are urged to shop around for auto insurance. Ontario has a very competitive marketplace. Prices for the same coverage vary based on each insurer’s claims experiences and the insurer’s rating system.”

Bad drivers may not see any impact

Aren’t seeing a reduction in your rate or you want to see if you can save more? Now is a good time to compare your rate.

  • syed

    My Insurance Company ” The Personal” has not reduced the rates . I got the new policy in August 2013. I spoke to them and they said they are waiting for the government directions. The last discussion was placed with the Personal Insurance in January 2014.

  • http://www.insurancehotline.com/ InsuranceHotline.com


    Insurance companies must “file’ their request for a change in rates with the Financial Services Commission on Ontarioi (FSCO) This can be a long process as FSCO must review all of the submissions that they have received from all companies. You can check what rate changes were approved for which company here.
    Anne Marie

  • Vulcan

    How come My Motorcycle Insurance has up more than 10 %
    this year???
    No tickets and no claims EVER!!!

  • http://www.insurancehotline.com/ InsuranceHotline.com


    The insurance rate that you pay is based partially on your driving profile. The other part is the insurance companies claims costs. If the company has paid a lot for claims on their whole book of motorcycle polices you will likely see your rate increase. Shop around! You might be able to save some money.

    good luck

  • Jaymar

    No at fault accidents since 1971 and no tickets since 1983 and my rates continue to go up.
    Explain that!

  • http://www.insurancehotline.com/ InsuranceHotline.com


    If you are not seeing a reduction in your rate and you have a clean record. Shop around, you might be able to save money.


  • Guest1138

    Long story short – the premiums of the many are used to pay the claims of the few. Unfortunately, claims haven’t been so few, and/or been higher on average. Insurance companies have other regular expenses just like all other businesses and individuals that increase as well.
    You probably consume less food now than you did as a teenanger, but if you were to compare the cost of that food you ate then to the cost of what you eat now, do you think think you’d be paying less now, 10 or 20 or 30+ years later?

  • Jigster

    This is a complete joke! Who would believe anything being said from the insurnace industry?

  • Zabber

    Rates will continue to go up until the ‘due’ date for the target 15% reduction. Insurance companies will then roll back those increases to show compliance with the government’s objectives. No different than jacking up the price of consumer products by 30% before announcing a sale of up to 15% off!

  • http://www.insurancehotline.com/ InsuranceHotline.com

    Good point, Guest 1138!

  • http://www.insurancehotline.com/ InsuranceHotline.com


    It sounds like it might be worth your while to compare your rate.

    Thank you

  • http://www.insurancehotline.com/ InsuranceHotline.com


    It sounds like you are not currently with the insurance company who has the lowest rate for your driving profile. Shop around to see if you can get a lower rate.
    Visit http://www.insurancehotline.com . We might be able to help.

    Thank you

  • Little Rock

    The combined insurance for my husband and I has come down by 18%. We are in our late 30′s, good driving record.

  • danny

    This is all a big con by the Liberal and the insurances companies of Ont. I have a clear record no tickets etc I got a 4 % reduction last yr and 1% this year so where is the !0% the liberals say I am supposed to get to come out to 15% over 2 years. to top it off my house insurance increased by 94% on my water sewer back up coverage since last year and I have never had a claim. talk about hi-way robbery what a scam. pissed of senior