Good news for drivers who need to renew their auto coverage: insurance providers lowered their premiums by an average of 0.5 per cent in Q3, reports FSCO.
The discount is part of the Ontario Liberals’ promise to reduce rates by a total of 15 per cent; while the initial July deadline to do that wasn’t met, they’re still striving for providers to steadily reduce their rates. It has been estimated that the measures will save drivers an average of $225 on their premiums.
As a result, insurance rates have dropped an average of 6.56 per cent across the province since July.
FSCO also announced regulatory changes that require all insurers to offer a discount for drivers who use snow tires. The discount will be applicable to all new and renewing policyholders as of January 1, 2016.
What Does This Mean for Drivers?
Auto insurance providers cutting their rates give drivers even more opportunity to shop around for the best deal. Remember, the rate cut is a province-wide average, meaning not every insurer has slashed their premiums; in fact, some have raised them. It’s important to compare your auto insurance options to ensure your coverage is provided by a truly competitive provider.
Take Advantage… While It Lasts
The Auto Insurance Cost and Rate Reduction Strategy may have been implemented by the Liberals, but it’s actually an NDP agenda; the latter essentially strong-armed the previous minority government to follow through in exchange for budget approval. However, now that there’s a federal Liberal majority, it remains to be seen how high a priority the discount will remain.
Is your current insurer on the list of those with discounts? Find out here.