This past July the latest rate changes were published by the Financial Services Commision of Ontario (FSCO). Every insurance company in Ontario must have changes to their rates approved by the FSCO each quarter.
An increase in rates is bad news for everyone, but it seems Ontario will be hit with the worse news yet. According to the FSCO report, approved rates increased on average 1.11 percent.
While this second quarter increase only reflects an average of drivers, some Ontario drivers may see their rates increase as much as 8.15 percent upon renewal. Why? Well, this all depends on who you have coverage with and the rate changes that have been given to your insurer to dole out.
Because the this is the third consecutive quarter with a rate increase, Ontario drivers should consider monitoring their insurance and perhaps look around for a better rate, “Consumers are urged to shop around for auto insurance,” FSCO has said in its quarterly statement. This is because rates for the same coverage can vary depending on each insurer’s claims experience and rating system.
But, what is causing the rate changes?
According to the FSCO report, two factors can be attributed to the change in rates in Ontario.
The first factor is that more reports and being presented on property damage. The advancements in technology have caused an increase in vehicle repairs. Therefore, more claims.
The second factor is the increase in distracted drivers. This has caused the collision claims that companies have to process to increase.
This increase in claims results in insurance companies paying out more in claims, thereby resulting in companies raising rates to compensate.
With all these changes in rates, it is important for you to see if you are getting the best rate.
Perhaps it’s time for you to look for other options.