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.
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A Financial Services Commission of Ontario (FSCO) survey shows that more than half (52%) 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% 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.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.”
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% on average; some rates increased as much as 3.7% while others decreased in the neighbourhood of 6.83%. That's a big swing. Depending on who your insurance provider is, you may be paying more for your policy upon renewal.