Auto insurance rates in Ontario increased an average of 0.6% in the last quarter despite efforts from the Liberal government to reduce rates by an average of 15% by next month.

The target was set two years ago as part of the Liberals' budget plan promising each of Ontario's 9.4 million drivers an average savings of $225. However, the Financial Services Commission of Ontario (FSCO) reports that rates fell only 6.56% on average in this timeframe, which is down from the 7% it was sitting at in April.

Opposition parties say this shows the government did not have a solid plan in place to meet their target, but Finance Minister Charles Sousa said otherwise. “Our plan to tackle auto insurance fraud and reduce costs is working. But we want to go even further,” he said in a statement issued by his office.

In order to increase or decrease insurance rates, each company must file a request with FSCO to have their rate change approved. This quarter, 26 insurers filed requests. While many companies' rates went down, some increased by almost as much as 16% averaging a total increase of 0.6% across the market.

As a result, many drivers will see their rates increase upon renewal, but some will still see their rates go down. Others may not see changes at all.

FSCO recommends all drivers shop around for car insurance to ensure they're getting the best rate.

Quick Tips to Lower Your Car Insurance Rates

  • Ask your insurer about available discounts
  • If you're a new driver, take a ministry-approved driver training course
  • Consider raising your deductibles (if you can afford to)
  • Bundle auto and home insurance with one provider
  • Review your policy to insure you're not paying for coverage you don't need
  • Consider joining a usage-based insurance program where you may be eligible for immediate savings of 5 per cent, with the potential to save up to 30 per cent upon renewal (Savings and availability varies by provider.)

Compare car insurance rates today. It's the quickest way to save.


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.

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