Here at RateSupermaket.ca, we keep you in the loop of different ways to save, whether it be on your mortgage, through investments, or on your car insurance. The Financial Services Commission of Ontario (FSCO) has reported that Ontario car insurance rates have increased by 3.35 per cent on average.
Car insurance rates fluctuate based on a number of different factors. However, before an insurance company can change rates, it must first be approved by the Financial Services Commission of Ontario (a regulatory agency of the Ministry of Finance).
FSCO publishes approved rate changes quarterly, and the latest results are in:
In the fourth quarter of 2018, approved rates from auto insurance companies increased by 3.35 per cent on average.
The list of approved rates seemed to be wide-ranging, seeing as this time around, some companies were approved for an increase of just 1.65 per cent, while another company inflated its rates by 34.87 per cent.
“Consumers are urged to shop around for auto insurance,” FSCO said in its quarterly statement. “Rates for the same coverage vary based on each insurer’s claims experience and the insurer’s rating system.”
In comparison, the third quarter of 2018 saw an average increase of 2.06 per cent, closing off a year of increases in approved rates (FSCO reported average increases of 2.23 per cent in Q1, and 1.11 per cent in Q2 of 2018).
Why are car insurance rates changing?
In its statement, FSCO noted two evolving trends that could be attributed to rising rates in Ontario.
First, insurance companies are reporting an increase in claims costs, related to increases in vehicle repairs costs.
Second, the growing number of distracted driving incidents may be driving up the overall cost of direct compensation and collision claims insurance companies need to process.
Essentially, insurance companies usually apply for a rate increase because they are paying out more in claims and need to compensate by raising rates.
How do I know if my car insurance rate changed?
With rates changing so often, it can be hard to tell if your company is still giving you the best rate. The same rate you were offered last year may not apply when you choose to renew.
Thankfully, RateSupermarket.ca gives its consumers the option to easily compare auto insurance quotes with its online comparison tool. Within minutes, you can see who offers the best coverage for the lowest price. It’s fast, easy and free.
Don’t be afraid to switch insurers. Shopping around on RateSupermarket.ca could save you hundreds of dollars on your car insurance.
This post is updated quarterly to reflect latest FSCO results.