Auto insurance rates rise in Ontario for third year in a row

By: Zandile Chiwanza on January 17, 2020

New year, same news for Ontario drivers. Auto insurance rates in the province increased by an average of 1.56% in the fourth quarter of 2019. 

Compared to an increase of 2.6% on average approved in the previous quarter, it’s a modest hike.

Every quarter, the Financial Services Regulatory Authority of Ontario (FSRA), the regulatory body responsible for regulating auto insurance in the province, reviews costs to determine if insurers can raise premiums. 

Scottish & York Insurance Co. Limited was approved for the largest rate hike, at 11.05%, with COSECO Insurance Company being approved for the second-largest increase, at 10.12%.

SGI Canada Insurance Services Ltd., wasn't far behind at 9.99%.  

Security National Insurance Company was the only insurer that was approved for a rate decrease at a meagre -0.03%.

What's causing higher rates? 

FSRA says the two trends that may be affecting auto insurance rates in Ontario are the increase in claims costs for repairing vehicles and the growing concern related to distracted driving

We called this late last year and calculated how much distracted driving costs you, apart from the fine there's an insurance hike to be expected. 

Remember that the approved overall rate change does not reflect how an individual driver’s premium may change, but reflects the average rate level change for all drivers who are insured with the carrier.

Below is a full list of the rate changes that were made in Q4 2019:

InsurerApproved Average Rate Change (%)
Allstate Insurance Company of Canada(1)0.00
Allstate Insurance Company of Canada0.02
Aviva General Insurance Company3.99
CAA Insurance Company3.95
Continental Casualty Company8.09
Co-operators General Insurance Company0.00
COSECO Insurance Company10.12
Echelon Insurance (1)0.00
Echelon Insurance5.00
Farm Mutual Reinsurance Plan Inc. (on behalf of Ontario Mutuals)4.80
Gore Mutual Insurance Company4.97
Guarantee Company of North America, The7.54
Intact Insurance Company5.00
Jevco Insurance Company6.00
Northbridge General Insurance Corporation0.48
Novex Insurance Company5.00
Royal & SunAlliance Insurance Company of Canada5.00
Scottish & York Insurance Co. Limited11.05
SGI CANADA Insurance Services Ltd.9.99
Traders General Insurance Company5.62
Unica Insurance Inc.4.78
Western Assurance Company5.00
Zenith Insurance Company4.93