Ontario auto increases increase rates

There was a report that the auto insurance rates in Ontario had gone down. The decrease of 1.9% in the average lowest rates quoted for auto insurance rates in Ontario in the first quarter of 2009 was compared to the first quarter of 2008, according to a Kanetix study. This quarterly decrease changed for 2010.
Why did the rates go down for 2009? Since people are not purchasing as many new cars, the percentage of vehicles that are six years or older increased by nearly 4% while new vehicles dropped more then 3%. This will contribute to optional coverages being dropped such as collision and comprehensive. This results in people spending less on insurance.

Ontario also offered a winter tire discount in 2009. Since 61% of Ontario drivers change their tires seasonally this will contribute to a drop in rates.

Now the insurers have applied and been approved by the Financial Services Commission of Ontario for the first quarter of 2009 for an average 0.95 percent increase.

FSCO says that 30.91 percent of the market had rate changes approved and those averaged to a 3.09 percent increase when weighted by market share.

These rate changes approved in the first quarter of 2009 become effective in the first quarter of 2009 or later for renewal business.

We now see rates have gone up for 2010. The FSCO has indicated that auto premiums increased an average of 5.37%, based on the entire market. Who is charging more? Here is a partial list of the insurers and what they have shown for increases:

  • Co-operators General Insurance Company +2.49%
  • Economical Mutual Insurance Company +4.16%
  • Intact Insurance Company +0.60%
  • Pilot Insurance Company: Market share: 4.89% Rate Change: +18.50%
  • Security National Insurance Company +7.80%
  • State Farm Mutual Automobile Insurance Company +7.24%
  • The Dominion of Canada General Insurance Company +0.18%
  • Wawanesa Mutual Insurance Company +8.98%

Talk to your agent or broker about how this might affect your rates. This is a good time to be on top of what you are paying and to whom!