Auto insurance rates in Ontario going to increase by over 3.2% in the first quarter of 2019
Average Rate Changes
Twenty-three insurers, representing approximately 51 percent of the market based on premium volume, had rates approved in the quarter. Approved rates will increase on average by 3.35 percent when applied across the total market.
The rate change shown for each insurance company is the average for that company, based on all the drivers it insures.
However, an individual policyholder may experience a rate change that is either higher or lower than the industry-wide average rate change, or the average rate change for a particular insurer, depending on several factors, such as:
- the vehicle insured;
- where he or she lives;
- driving experience;
- at-fault accident and conviction history of drivers;
- whether the vehicle is used for pleasure or commuting; and
- choices made by the policyholder on coverage purchased and deductible or liability limits.
Also, as most policyholders purchase annual policies, any changes approved for the insurer and effective prior to the policy renewal date, or changes in the policyholder’s circumstances since their last renewal (e.g., at-fault accidents, driving convictions), will impact the policyholder’s rate at renewal.
Consumers are urged to shop around for auto insurance. Ontario has a very competitive marketplace. Rates for the same coverage vary based on each insurer’s claims costs and the insurer’s rating system. Inder Madan an experienced insurance broker can provide a competitive quote for personal and commercial auto insurance. It was saving of 1500 dollars for 3 vehicles for personal cars in Brampton.
FSCO’s Rate Approval Process
Insurers must submit proposed changes to their rates to FSCO for approval along with supporting actuarial data.
FSCO and its actuaries review this data and insurers’ assumptions regarding claims costs, expenses and investment income to ensure that, as required by law, the proposed rates are
- just and reasonable;
- not excessive; and
- not going to impair a company’s financial solvency.
As a result of FSCO’s review, an insurance company may be required to amend its proposed rates before they are approved.
Most premium dollars collected by insurers go towards paying for claims for people injured in car accidents. Insured persons who are injured can make a claim for Accident Benefits (AB), regardless of fault.
In some cases, seriously injured parties can also make a claim by launching a lawsuit against the at-fault driver. These claims are paid under the Third Party Liability – Bodily Injury (TPL) coverage of an automobile insurance policy.
The AB and TPL coverages accounted for 52.4 percent of claims costs in 2017,
When an insurance company adjusts its rates for a particular coverage, it means that the company has experienced a change in the claims costs for that coverage. For example, an increase in rates for TPL coverage would indicate that an insurer has experienced a higher number or higher average cost of bodily injury claims. A company must provide claims costs data to FSCO when proposing a rate change for any coverage.
FSCO continues to monitor two evolving trends that may be affecting auto insurance rates in Ontario. First, insurance companies are reporting an increase in claims costs for repairing vehicles. Second, FSCO notes the growing concern related to distracted driving. As the number of accidents due to inattentive driving increases, so too do the claims costs. FSCO will continue to monitor any impact these trends have on insurance rates.
I will be glad to help you to lower your auto insurance rates. Saving can be 1000 to 1500 for 3 cars in the family.
CALL TO COMPARE: (905)568-1676
the content of the article is from FSCO website.