Ontario car insurance rates rise for third straight quarter
By: John Shmuel on July 13, 2018
Auto insurance companies in Ontario have been approved to raise rates by an average of 1.11% in the second quarter, signalling higher premiums for the province's drivers.
This is the third straight quarter that insurance approvals have increased, following a 2.23% increase in the first quarter of the year and a 1.03% increase in Q4 2017.
Rate approvals are handled by the Financial Services Commission of Ontario (FSCO), which regulates insurance pricing in the province. Insurance companies must apply to FSCO for any changes in what they charge consumers.
Ontario drivers currently pay the highest insurance premiums in the country, a fact that has variously been blamed on insurers overcharging consumers and widespread fraud in the province. The average Ontario driver pays $1,458 annually for an insurance policy, compared to $1,316 for the next most expensive province, British Columbia. Meanwhile, drivers in Quebec — the province with the cheapest insurance — pay a mere $724.
While rates rose 1.11% for Ontario drivers last quarter, some insurers actually decreased their rates.
SGI Canada Insurance Services Ltd. was approved for a 0.69% decrease on new policies and renewals, while Northbridge General Insurance Corp. was approved for a 0.29% decrease.
Unfortunately, no company lowered their rates by more than 1%. But there were some pretty big increases.
Economical Mutual Insurance Company was approved for a 8.15% increase, while Primmum Insurance Company was approved for a 5.01% hike. Security National Insurance Company was approved for a 3.99% increase.
Not all of these changes will come into effect right away, but most will impact both existing customers renewing their policies and new customers signing up for the first time. It's important for consumers to compare their insurance rates whenever these changes happen.
See the full list of approvals on FSCO's website.
