Auto Insurance

Get ready Ontario, auto insurance rates will increase as much as 7% this quarter

By: Dominic Licorish on April 24, 2017

The Financial Services Commission of Ontario (FSCO) has reviewed and approved rate changes for auto insurance premiums and contrary to the government’s promise of lower rates, premiums will be going up in the next several months.

Auto insurance companies in Ontario must apply for permission to change their rates every quarter. In January, overall rates were set to go down by 0.14%. This time, we’re seeing a different story. FSCO approved rate changes for 48 companies, representing 87.86% of the market. We’ll see premiums rise an average of 1.24% across that group.

Leading the pack with the highest approved premium increase (7.08%) is Certas Direct Insurance Company. It holds only 2.65% of the market share, but it wasn’t alone. Close behind, the biggest insurer in Ontario, Intact Insurance is raising rates 5.06%.

As for which insurer has the biggest drop in premiums? That would be Aviva General Insurance Company with an average rate change of -3.33%. FSCO recommends comparing and switching car insurance companies to get the best price for your coverage.

The province has been trying unsuccessfully to lower auto insurance premiums by a significant percentage for years. Ontario Premier Kathleen Wynne actually promised to lower rates 15% by August of 2015, a target the government has yet to hit — even after cutting minimum coverage amounts for accident benefits.

So, why would FSCO be approving higher rates for these companies when the goal is to lower them? It’s a question we’d really like to hear an answer for, but with everyone’s eyes focused on housing, auto insurance prices will likely fly under the radar for a little while.

Disclaimer: Check out the list below to see whether your insurer is among those that submitted cheaper rates last quarter. Keep in mind that these are averages, and your rate can rise or decrease based on personal circumstances.

Insurer

2015 Market Share (%)

Effective New Business Date

Effective Renewal Business Date

Approved Average Rate Change (%)

AIG Insurance Company of Canada (2)

0.05

1-Jun-2017

30-Aug-2017

-2.10

Aviva General Insurance Company (3)

4.92

4-Jul-2017

15-Sep-2017

-3.33

Aviva Insurance Company of Canada

6.52

1-Jul-2017

1-Jul-2017

-0.91

Belair Insurance Company Inc.

0.06

26-Jan-2017

22-Mar-2017

3.74

CAA Insurance Company (2)

1.33

1-May-2017

1-Jun-2017

-0.84

Certas Direct Insurance Company

2.65

17-Feb-2017

18-Apr-2017

7.08

Certas Home and Auto Insurance Company (2)

8.92

11-Jun-2017

10-Aug-2017

-1.11

Chubb Insurance Company of Canada (including Mitsui Sumitomo Insurance Company, Limited and Federal Insurance Company) (2)

0.50

1-Jun-2017

1-Sep-2017

-2.05

Coachman Insurance Company (2)

0.44

1-Jun-2017

1-Jun-2017

-0.58

Commonwell Mutual Insurance Group, The (2)

0.39

1-Jun-2017

1-Jun-2017

-0.70

Co-operators General Insurance Company

4.44

19-Apr-2017

19-May-2017

4.01

Co-operators General Insurance Company (2)

4.44

14-Jun-2017

14-Jul-2017

0.00

COSECO Insurance Company

1.22

1-Apr-2017

1-May-2017

4.00

COSECO Insurance Company (2)

1.22

1-Jul-2017

1-Aug-2017

0.00

CUMIS General Insurance Company (2)

0.38

1-Jul-2017

1-Aug-2017

-1.01

Dominion of Canada General Insurance Company, The

3.80

11-Apr-2017

9-May-2017

1.05

Echelon Insurance

0.60

1-May-2017

1-May-2017

0.00

Echelon Insurance (2)

0.60

1-Jul-2017

1-Jul-2017

-0.57

Economical Mutual Insurance Company (2)

3.55

1-Jul-2017

1-Jul-2017

-1.02

Farm Mutual Reinsurance Plan Inc. (on behalf of Ontario Mutuals) (2)

1.67

1-Jun-2017

1-Jun-2017

0.00

Federated Insurance Company of Canada (2)

0.02

1-Jun-2017

1-Jun-2017

-1.42

Gore Mutual Insurance Company

1.59

1-May-2017

1-Jul-2017

3.47

Guarantee Company of North America, The (2)

0.59

1-Jun-2017

1-Jun-2017

-0.95

Heartland Farm Mutual Inc. (2)

0.31

1-Jul-2017

1-Jul-2017

-0.94

Intact Insurance Company

10.23

22-Feb-2017

24-Mar-2017

5.06

Jevco Insurance Company (2)

0.82

1-Jun-2017

1-Jun-2017

-0.47

Nordic Insurance Company of Canada, The

4.60

26-Jan-2017

22-Mar-2017

1.90

Northbridge General Insurance Corporation (2)

0.00

1-May-2017

1-Jun-2017

-0.61

Northbridge Personal Insurance Corporation (2)

0.64

1-May-2017

1-Jun-2017

-0.51

Novex Insurance Company

1.03

22-Feb-2017

24-Mar-2017

5.08

Optimum Insurance Company Inc. (2)

0.22

15-Apr-2017

15-May-2017

-0.91

Personal Insurance Company, The

3.92

17-Feb-2017

18-Apr-2017

5.58

Perth Insurance Company (2)

1.00

1-Jul-2017

1-Jul-2017

-0.59

Portage La Prairie Mutual Insurance Company, The (2)

0.23

1-Jun-2017

1-Jun-2017

-0.86

Primmum Insurance Company

1.66

24-Apr-2017

19-May-2017

5.06

Royal & SunAlliance Insurance Company of Canada

1.08

1-Apr-2017

22-May-2017

2.72

Royal & SunAlliance Insurance Company of Canada (2)

1.08

1-Aug-2017

22-Sep-2017

0.00

S & Y Insurance Company

0.00

1-Jul-2017

1-Jul-2017

-2.62

Scottish & York Insurance Co. Limited

1.17

1-Jul-2017

1-Jul-2017

-1.00

Security National Insurance Company

7.59

24-Apr-2017

19-May-2017

2.70

SGI CANADA Insurance Services Ltd. (1)

0.00

11-Jun-2017

N/A

N/A

Sonnet Insurance Company (2)

0.00

1-Jul-2017

1-Jul-2017

-0.76

Sovereign General Insurance Company, The (2)

0.00

1-Jun-2017

1-Jun-2017

-1.29

TD General Insurance Company

2.74

24-Apr-2017

19-May-2017

-0.29

Tokio Marine and Nichido Fire Insurance Co., Ltd. (2)

0.01

1-May-2017

1-Jun-2017

-0.70

Traders General Insurance Company

1.70

1-Jul-2017

1-Jul-2017

-1.03

Unica Insurance Inc. (2)

0.65

1-May-2017

1-Jun-2017

-0.81

Unifund Assurance Company (2)

3.29

1-Jun-2017

1-Aug-2017

-0.79

Western Assurance Company

1.00

1-May-2017

22-Jun-2017

2.74

Western Assurance Company (2)

1.00

1-Aug-2017

22-Sep-2017

0.00

XL Specialty Insurance Company (2)

0.00

1-May-2017

1-May-2017

-0.79

Zenith Insurance Company (2)

0.33

1-May-2017

1-Jun-2017

-0.40

Zurich Insurance Company Ltd (2)

0.00

1-Jun-2017

1-Jun-2017

-1.37

Total Market Impact

1.24

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