News & Resources

Car Insurance Rates Have Decreased in Ontario

Oct. 15, 2015
3 mins
Professional couple in grey vehicle

Auto insurance rates have decreased by an average of 0.50% in Ontario, with some companies dropping rates by as much as 4.1%, the Financial Services Commission of Ontario (FSCO) reports.

Previously, rates had increased by an average of 0.60% in the second quarter.

Every quarter, insurers can file a request to FSCO for approval to increase or decrease their rates. This quarter was special because insurers who didn't already offer a winter tire discount were required to submit a request by August 28, 2015. As of January 1, 2015, all insurers in Ontario will be required to offer drivers who use winter tires a winter tire discount, typically averaging about 5%.

This move is in response to the Ontario Liberal government's pledge to decrease auto insurance rates in Ontario. Back in 2013, they promised to reduce rates in the province by an average of 15% within two years, but when August -- the deadline -- rolled around, rates had decreased on average only about 7%.

This quarter's decrease is a good sign.

"The average rate changes reported are a strong indicator of the direction of premiums in the upcoming policyholder renewal cycle," FSCO said.

Will My Rates Go Down?

Just because rates have decreased on average does not mean your rates are guaranteed to go down. Some drivers will see decreases and some will see increases, while others will see no change at all.

Other Ways To Save On Car Insurance

Thankfully, there are other ways to save on your auto insurance.

  • Bundle your home insurance and auto insurance for discounts of 5% to 15%
  • Install winter tires when temperatures average 7 degrees Celsius
  • Maintain a clean driving record
  • Ask your provider about any discounts you may be eligible

And more importantly, the quickest way to save is to compare rates to see if you could be getting a better deal today.

RATESDOTCA Team

The RATESDOTCA editorial team are experienced writers focused on sharing stories and bringing you the latest news in insurance and personal finance. Our goal is to provide Canadians with the information and resources they need to make better insurance and financial decisions.

Latest life insurance articles

10 Myths About Life Insurance Busted – Some May Surprise You
You may be young with no kids and no mortgage. Life insurance is for someone older, who has dependents right? Wrong. Let’s debunk life insurance myths and learn why everyone needs some form of coverage.
Will a Life Insurance Policy Cover Death Due to COVID-19?
Demand for life insurance may be on the rise during the pandemic as more Canadians consider buying a policy or reviewing ones they already have. If you’re thinking of applying for a policy, here are a few things to keep in mind.
How Does Vaping and e-Cigarettes Affect Life Insurance?
Many insurers may classify vaping in the same way they do smoking. If you smoke or vape, you can still qualify for a life insurance premium, but in all likelihood, you will pay a higher rate than someone who does not.