How COVID-19 has Affected Auto Insurance Rates in Ontario
As a driver in Ontario, auto insurance rates in our province are certainly a topic of interest.
The costs of insuring a vehicle just seem to keep on climbing.
(See our post with more information on the rising costs of auto insurance in Ontario).
Now new numbers are showing how auto insurance rates have been impacted by the pandemic.
Ontario experienced a 2% rise in auto insurance rates as compared to Q1 (source: Canadian Underwriter).
Why did auto insurance rates go up during the pandemic?
There are various factors at play that can explain the increase in what you pay for insurance on your car…
~ There were more people looking to drive. Many individuals that would previously use public transportation to get around opted to switch to driving instead. Thus the demand for auto insurance coverage increased.
~ Some of these drivers may have had a long break in their driving history. Or perhaps they were getting behind the wheel for the first time. As we have discussed many times here on the blog (click here to check out all of our posts that touch on high risk auto insurance), inexperienced drivers or those without a strong, long-term driving record are considered higher risk by insurance companies and thus pay higher rates.
~ Insurers also saw a lot of changes with their customer base. Some drivers cancelled their auto insurance as they were no longer commuting or using a vehicle to get around. Some shifted their coverage to a simpler plan as they were no longer using their car as often and did not require coverage as robust or simply needed to find ways to cut costs.
~ While we saw less accidents with the pandemic (see How COVID-19 Has Affected Driving in Ontario), there has been an increase in the cost to fix vehicles and this is expected to continue according to the FSRA.
The good news and bad news about Ontario auto – Canadian Underwriter This article also offers more information including further data comparing Q2 2019 to Q2 2020.
We know that as a driver in Ontario you’re looking for the best auto insurance rates possible. And we’re here to help! Head over here to get a quote online, or reach out to one of our insurance specialists to learn more about how you can save.
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