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Car Insurance Rates in Ontario on the Rise Again

car insurance Ontario

High car insurance rates are nothing new for Ontario. As we’ve already discussed here on the blog, in our province we have some of the most expensive rates in the country, and this is not going to change for 2020.

As the CBC reported, drivers in Ontario can expect to see their car insurance rates go up as much as 11%, with average rates in the province among the highest in Canada. The Financial Services Regulatory Authority of Ontario (FSRA) has approved increases in insurance premiums for 20 providers in the province. They stated that on average the increases amount to 1.56% when applied to the total insurance market in Ontario. On a company by company basis, some providers obtained the go-ahead on increases just over 11%, with others around the 10% mark.

This is all despite promises that were made by the Ford government to reduce rates.  Earlier in 2019, the government vowed to make major reforms of the current system to address the rising costs of car insurance in the province.

So what’s with the increases?

According to the Insurance Bureau of Canada (IBC), the increases are due to the rising frequency as well as the severity of physical damage claims made in the province. The FSRA cited the increasing claims cost to fix vehicles as well as rising concerns around distracted driving (source: Canadian Underwriter).

Let’s take a look at some of the specific data shared in the aforementioned articles….

Car insurance by the numbers:

From the CBC:

  • Ontario has one of the lowest accident and death rates in Canada (according to the IBC)
  • Ontario has the second highest car insurance rates in Canada (second only to BC)
  • The average cost of insuring a vehicle in Ontario is $1,505
  • The lowest insurance rates in Canada can be found in Quebec, with the average sitting at $717

From Canadian Underwriter:

  • For physical damage to cars, the number of claims reported in Ontario in 2018 was 21.2% higher than it was in 2014. Over that same period of 2014 – 2018, there was only an increase of 5.6% of total registered cars in Ontario.
  • The highest rate increase (11.05%) went to Scottish & York Insurance Co. Limited (a subsidiary of Aviva Canada).

So what can you do as a driver in Ontario to keep your rates down? In a nutshell, do what you can to avoid claims, keep a pristine driving record and research, research, research when looking for car insurance providers. Here are some more resources from the blog with further guidance…

~ 10 Ways You Can Get Cheaper Car Insurance Rates

~ How to Get the Best Insurance Rates

~ 4 Factors that Affect Car Insurance Rates in Ontario

Resources consulted:

CBC: Auto insurance rates in Ontario going up as much as 11%

Canadian Underwriter: What’s really behind Ontario auto rate increases

Have any questions about the rate increases for car insurance in Ontario? Need some help finding the best rates in our province? Reach out to one of our insurance professionals, or head over here to get an online quote.

car insurance Ontario Click for an Ontario car insurance quote or call us at 1-855-237-2905

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