Bad news for car owners, insurance rates are going up this year in Ontario.
According to a news release from the Financial Services Commission of Ontario, car insurance rates are projected to increase by an average of 1.56 per cent across the entire market during the first quarter of 2020.
As of January 2020, 21 insurers, representing approximately 40 per cent of the market, based on premium volume, had their rates approved by the Financial Services Regulatory Authority of Ontario (FSRA).
By comparison, rates increased by an average of 2.60 per cent in the third quarter of 2019.
The rate change for each company is an average based on the rates of all the drivers they insure.
Individual drivers may experience rate changes that are either higher or lower than the average for their provider depending on:
- the vehicle insured
- where the Insured lives
- driving experience
- at-fault accident and conviction history of drivers
- whether the vehicle is used for pleasure or commuting
- choices made by the policyholder on coverages purchased and deductible or liability limits
When a company adjusts the price of a specific coverage, it is due to the fact they experienced a change in the claims cost for said coverage.
Before an insurance company can increase their rates, they must first submit them to the FSRA and have them approved.
Additionally, as a result of FSRA’s review, an insurance company may be required to amend its proposed rates before they are approved.