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Car Insurance In Ontario: The Rate Increase And What It Means For You
Administrator
Oct 14, 2018 • 2 min read
Do you drive a car? Listen up! The Financial Services Commission of Ontario (FSCO) approved premium rate increases for car insurance in Ontario for new and existing drivers. FSCO has now released the auto insurance rate approvals for the third quarter of 2018. Car insurance rates are increasing in Ontario by 2.06%, on average, compared to a 1.11% increase in Q2.
You may be wondering why the rates increased for car insurance in Ontarioand what it means for you. Here are the top four questions about the rate increase – answered.
1. Why did the premium rates rise for car insurance in Ontario?
Insurance companies proposed an increase in rates for car insurance in Ontario due to the recent rise in interest rates, claims costs, distracted driving, and other driving trends.
The FSCO, a governmental organization which regulates insurance companies, chose to ultimately approve the insurance companies’ proposals after a long review process.
2. What’s the effect of the increase?
On average, rates for car insurance in Ontario are set to rise by 2.06%.
3. What are other factors that affect my rate for car insurance in Ontario?
This rise represents a general decision based on the discretion of insurance providers and the FSCO. But, there are many different factors that determine your individual insurance policy rate for car insurance in Ontario. Some of the primary factors include:
The type of vehicle being insured
The neighbourhood of the policyholder’s residence
Driving experience of the policyholder
At-fault accident(s) and driver conviction histories
The reason for trips made by the vehicle
Policyholder choices about coverages purchased and deductible/liability limits
4. What should I do in response to this rate increase?
A rate increase may seem like bad news, but it’s important to remember that Ontario is still a very competitive marketplace. Insurance companies will still compete on policy prices to get the customer, which is a good thing for you.
The bottom line
It’s important to shop around for rates to make sure you’re getting the best deal on your car insurance following the rate increase.
Get your free credit scorefrom Borrowell for free in 3 minutes. We’ll show you the best auto insurance providers suited to your financial profile!
Borrowell is dedicated to making financial stability possible for everyone. With over 3 million members, the company offers free credit scores in Canada, education, weekly credit monitoring, credit building solutions, as well as digital tools like AI-powered credit coaching and personalized financial product recommendations. For more information, visit borrowell.com or download the mobile app for Android or iOS.
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