In its latest quarterly publication, the Financial Services Regulatory Authority of Ontario (FSRA) reports that Ontario auto insurance rates are expected to increase, on average, 2.60 percent. FSRA took over insurance monitoring from the Financial Services Commission of Ontario (FSCO), earlier in 2019.
Twenty-six insurers, representing approximately 81 percent of the insurance market based on premium volume, had rate changes approved by FSRA in the third quarter (Q3) of 2019. And, the rate changes approved vary significantly. While some drivers could see their rates decrease in the neighbourhood of 0.20 percent, other drivers could see their rates jump as high as 15.47 percent.
Imagine being on the receiving end of that renewal notice!
Eight consecutive quarters of rate increases
The news that approved rates show an increase isn’t surprising. Rates have been climbing for two years now. You have to look back to the third quarter of 2017 to find a decrease in approved rates, and that decrease was flat at 0.1 percent. The following is how rates have climbed since, up to and including the latest release:
- Q4 2017--Approved rates increase on average 1.03 percent
- Q1 2018--2.23 percent
- Q2 2018--1.11 percent
- Q3 2018--2.06 percent
- Q4 2018--3.35 percent
- Q1 2019--2.70 percent
- Q2 2019--1.99 percent
- Q3 2019--2.60 percent
No matter how you look at it, it’s not a pretty picture for Ontario drivers.
For each company given the go ahead to change their rates, FSRA admits, “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”. As a result, FSRA urges consumer to shop around for auto insurance.
Putting your current auto insurance rate to the test, is easily the best way to know for certain that you’ve got the best car insurance price going. In no time, at Rates.ca, you can compare quotes from over 30 insurance providers to find your best price for auto insurance.