In Ontario, the auto insurance companies are raising their rates as much as 1.11% on average during the second quarter which means that drivers in Ontario continue to face higher premiums. This increase is the third straight quarter that the rates have gone up. In the first quarter of 2018, the rate rose 2.23% and in the 4th quarter of 2017, the rate went up 1.03%.
FSCO or the Financial Services Commission of Ontario handles rate increases. They regulate the insurance pricing in the province. To make changes in rates for their consumers, insurance companies apply to FSCO. When compared to the rest of the county, drivers Ontario currently pay the highest rates. In the province insurers often overcharge consumers and there have been issues with fraud. On average, a driver in Ontario pays $1,458 for their insurance policy whereas in B.C. they pay $1,316 which is the next most expensive province. The cheapest insurance is found in Quebec where they pay just $724.
Some insurers did decrease rates such as SGI Canada Insurance Services Ltd. As they were approved for a 0.69% decreases on any new policy or renewal. A 0.29% decrease was approved for Northbridge General Insurance Corp. No company was able to lower their rates by 1% or more, but several had large increases such as Economical Mutual Insurance Company which raised rates by 8.15%. Primmum Insurance Company hand an increase of 5.01% and Security National Insurance Company saw an increase of 3.99%. The changes won’t start right away, but new customers and well as existing customers will be impacted. Customers should always check their insurance policies when changes like these happen.
There are several factors as to why insurance rates tend to fluctuate. One thing that must happen first is that the company must be approved for the chance by the regulatory agency of the Ministry of Finances called the Financial Services Commission of Ontario or FSCO which publishes rate changes on a quarterly basis.
Customers should shop around for the best auto insurance rates before they get their insurance if they want to save money. Rating for one insurer can be vastly different from another insurer claims FSCO. The insurer rating system and their claim experience can play a factor in the rates they charge to you.
Your rates may change without you even knowing about it. You should check your rate periodically to see if they have changed. The rate you were offered last year may no longer apply when it comes time to renew your auto insurance. If you go online, you will find many places where you can compare auto insurance rates to find the best deal that works for your needs.
Ontario is seeing rate changes for several reasons. One of the main factors is the insurance companies are seeing rising claim costs. Newer vehicles that are involved in accidents are more expensive to repair which adds to the rising costs of insurance. Other factors adding to rising costs include incidents of distracted driving which add to the cost of direct compensations and the claims that insurance companies have to process. These companies must pay more in claims and this raises your rates as a driver.
If you look at the statistics, the drivers in Ontario pay more for their auto insurance coverage when compared to other drivers in Canada. The drivers in urban areas tend to pay more than those in the rural areas as more crashes tend to occur in dense urban settings as there are more cars on the road.
Those that hold positions in government can also impact your insurance rates. For example, Doug Ford indicated that he wanted to end the practice of having your auto insurance costs be based upon where you live before he became party leader, but never directly addressed this in the province during the elections. He mainly focused on lowering hydro fees and removing the carbon tax. Different government policies depending upon who is in charge may cause insurance companies to change their rates.
Your insurance rates can change based upon a wide number of factors. It’s important to check them periodically to ensure that you’re getting the best rates for your needs. You may find that another insurance company is offering you better rates so a change to a new insurer could help you reduce your overall insurance costs. You should use online resources to compare insurance rates to find the best one for your current needs.
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