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Now that the election is over, it’s unclear how newly-appointed Premier Doug Ford will tackle rising auto insurance rates in Ontario.

Over the course of the 2018 provincial elections, both the Liberal and NDP party touched on plans to tackle rising auto insurance rates in Ontario – a hot topic for any Ontario resident with a vehicle, as the province is known to have the highest rates in the country. However, now that Doug Ford's PC party won the election, it's unclear how rates will be affected. The party’s published agenda mentions items like scrapping the carbon tax and lowering hydro fees, but does not specifically address the subject of auto insurance in the province.

Prior to Ford becoming the party leader this past March, the PC party indicated that if it was in power, it would end the practice of factoring where you live into your auto insurance rates. Statistically, drivers in urban areas pay more for coverage than drivers in rural areas because insurers receive more claims in areas that are heavily populated and simply have more people on the road. However, the party said it would work on adjusting rates for those in Ontario’s biggest cities while still protecting the premiums of those who live in less populated areas of the province.

As mentioned, Ontario drivers already pay the most for auto coverage than drivers in any other part of the country. More recently, the Financial Services Commission of Ontario (FSCO) approved an increase in rates by 2.23 per cent in the first quarter of 2018. And while an average increase of one per cent here and two per cent there may not sound like a lot, it can add up to hundreds of dollars over the years in what seems to be a constant uptick in rates every few quarters.

If auto insurance rates are still trending upwards when FSCO releases the Q2 2018 approved rate changes in July, it's likely we'll learn of the premier's plans sooner rather than later.

How to save on car insurance

One of the easiest ways to lower your rate is to shop around regularly, or at minimum when it comes time to renew your policy. The worst thing you can do is auto-renew with the same company without finding out if there is a better lower rate available with another company.

Auto insurance in Ontario is likely going to change in the years ahead, but only time will tell to what extent. In the meantime, ensure you're getting the lowest price possible by comparing rates at RATESDOTCA. We search for the lowest rates from more than 50 insurance providers so you can be confident that you’re getting the best deal.


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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