Do You “Auto Renew” Your Car Insurance Policy?

When it comes time to renew your auto insurance policy, do you shop around to see if you’re still getting the best deal for car insurance? Many Ontario drivers say they don’t bother and simply allow their auto insurance to renew automatically.

• Related Read: Car Costs You Can Spend Less On: Gas and Car Insurance

A Financial Services Commission of Ontario (FSCO) survey shows that more than half (52 per cent) of Ontario drivers simply paid the renewed rate, or took no action, when it came time to renew their auto insurance policy, making their renewal automatic. An additional 16 per cent couldn’t recall what they had done (or didn’t do) last time they needed to renew.

Auto renewing could be costly

There are two important reasons why you shouldn’t simply allow your policy to automatically renew in the coming months.

  1. New auto insurance reforms came into effect on June 1, 2016 and FSCO is encouraging all Ontario drivers to do the following before renewing their auto insurance policy:

    • Learn more about the auto insurance reforms and how it may affect you.
    • Compare your new policy’s coverages and options to your previous policy.
    • Call your insurance representative to discuss options and ask questions.
    • Shop around to get the best price and the policy that meets your needs.

    Taking a hands-on active approach while renewing is essential as some of the coverages included in your standard auto insurance policy have changed – some were reduced, and some options for increased coverage were eliminated or updated.

    “Ontario drivers need to know if the changes to auto insurance reduce something that is important to them,” explains Brian Mills, CEO and Superintendent at FSCO. “Understanding their coverage and the options is crucial to ensuring they are protected in the event of an accident.”

  2. Auto insurance rates often change. In fact, each quarter, FSCO publishes the auto insurance rate changes that have been approved. The most recent approved rates increased by 0.33 per cent on average; some rates increased as much as 3.7 per cent while others decreased in the neighbourhood of 6.83 per cent. That’s a big swing. Depending on who your insurance provider is, you may be paying more for your policy upon renewal.

Shop around for the best price and best coverage

Your coverage has changed, and chances are your rates have too. Compare rates at Rates.ca to find the coverage you need at the best price available. It’s easy, secure and free and can save you hundreds of dollars.

About 

Lesley Green is a writer and editor, and has been writing about insurance and personal finance matters since 2002. She regularly goes to the theatre, loves to travel, curl and, depending on how well she's hitting the ball, occasionally golf. She has yet to meet a vegetable she doesn't like, and has been known to barbecue even in the foulest of weather. Lesley resides in Toronto.

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