Ontario motorists are unlikely to cheer when the Financial Services Regulatory Authority of Ontario (FSRA) allows auto insurers to raise the cost of car insurance. Nonetheless, FSRA’s fourth-quarter (Q4) 2019 announcement confirms premiums for private passenger vehicles will increase by an average of 1.56%, although some drivers may see an increase as much as 11.05%.
A total of 21 insurers, approximately 40% of the market based on premium volume, had rate hikes approved in Q4 2019. This increase will not affect Ontario drivers until their respective policies are up for renewal.
This announcement marks FSRA’s ninth consecutive auto premium increase in Ontario.
In its third-quarter (Q3) 2019 decision, FSRA gave 26 insurers – approximately 81% of the insurance market based on premium volume – the green light to hike rates.
Car Insurance Hikes Remain Consistent in Ontario
A car insurance hike is not new news to Ontario’s drivers, who have seen FSRA increase rates consistently over the last two years.
The last time there was a decrease in car insurance was Q3 2017, and that decrease was flat at 0.1%. Here is a quick overview of FSRA’s auto rate decisions since Q4 2017:
|Quarter and Year||Approved Average Rate Change (%)|
FSRA notes individual policyholders may see rate changes that are either higher or lower than the industry-wide average depending on several factors, such as:
- The type of vehicle you drive
- The municipality in which you live
- An individual’s driving experience
- Your record of at-fault accidents and conviction history
- Whether your vehicle is used for pleasure or commuting
- The choices you make on coverages and deductible or liability limits
FSRA also encourages consumers to shop around for auto insurance.
Know Your Coverage Options
Chances are most drivers only consider what auto insurance costs them in general versus considering what it may cost if they are in a collision. If you don’t have the right coverage and you are involved in an accident, the financial implications may be significant. Therefore, it’s critical to carefully scrutinize your auto policy, know what you have protection for today, and learn what coverage options are available to you.
On that note, and since you are already here, why not take a few minutes to find out if your current auto insurance rate is the best option available? Through Rates.ca, you can compare real-time car insurance quotes from over 30 insurers to find your best price for auto insurance.