Great news for Ontario drivers – lower pricing was rolled out across the province last week by auto insurers, according to the quarterly rate report released by the Financial Services Commission of Ontario (FSCO).
Thirty nine insurers, representing 73.48 per cent of the market, have cut their premiums by a province-wide average of 0.95 per cent, with some insurers slashing rates up to 7 per cent. This is compared to an average rate reduction of 0.54 per cent reported in Q4 of 2014.
Will You See Lower Auto Insurance Premiums?
Keep in mind, these reports indicate the average reduction put in place across the province; some drivers may see lower, higher or unchanged premiums, depending on their specific driver history and demographics.
“An individual policyholder may experience a rate change that is either higher or lower than the industry-wide average rate change, or the average rate change for a particular insurer, depending on several factors,” states FSCO.
How Can I Take Advantage of these Auto Insurance Premium Discounts?
- Don’t wait for your renewal deadline: It’s important to shop around when rates are lower; as some insurers are implementing greater reductions than others, it’s worth checking to see if you’ll qualify for a better rate elsewhere.
- Try a bundle: Did you know – combining your home and auto insurance policies can save you up to 15 per cent? Give yourself double the discount opportunity by exploring your bundling options.
- Start with your insurer: Sometimes, it pays to ask for a better deal, especially when the industry is absorbing a reduction. You just might receive a lower rate for your efforts!
- Increase your deductibles: You can save between an additional five and 10 per cent by increasing your deductible. Just ensure you can afford to do so first!
- Shop around. Rates are constantly changing. Comparing auto insurance quotes helps ensure you’re getting the best deal.
Why Are Insurers Discounting Their Premiums?
The Ontario liberals have mandated the Auto Insurance Cost and Rate Reduction Strategy, an NDP-driven election budget promise that requires insurers to cut their premiums by an average of 15 per cent. While it remains to be seen whether the Strategy’s August 2015 deadline will be met, the measures are estimated to save the average driver $225 on their premiums