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.
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.
Thankfully, there are other ways to save on your auto insurance.
And more importantly, the quickest way to save is to compare rates to see if you could be getting a better deal today.