Get money-saving tips in your inbox.

Stay on top of personal finance tips from our money experts!

News & Resources

Car Insurance Rates Have Increased in Ontario

July 16, 2015
2 mins
A man working from home sits on his laptop at his kitchen island

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.

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 Life insurance myths debunked
Life insurance is for someone older or has kids, right? Wrong. Let’s debunk life insurance myths and learn why everyone needs some form of coverage.
6 mins read
Do you need life insurance? A primer for Canadians
Life insurance isn’t a one-size-fits all solution. But if you have dependents, it can be an important financial safety net for those you love.
7 mins read
Why life insurance should be part of estate planning for new parents
Life insurance is one of the best ways new parents can protect their family and help loved ones in the event of your unexpected death.
5 mins read

Subscribe to our newsletter

Stay on top of our latest offers, relevant news and tips!

Thanks for joining!

You'll be hearing from us shortly - stay tuned.