Ontario private passenger auto insurance rates rose during the first quarter of 2003 (January 1, 2003 to March 31, 2003).
The rate applications approved during the first quarter of 2003 indicate an average increase of 7.32 per cent, when weighted by market share for those insurers making rate changes. The weighted average rate changes for the previous four quarters were 5.18%, 5.9%, 8.33% and 9.2% for first quarter 2002, second quarter 2002, third quarter 2002 and fourth quarter 2002, respectively.
The average cost of auto insurance in Ontario at the end of the first quarter of 2003 was 19.16 per cent higher when compared with the end of the first quarter a year earlier. This calculation is based on the renewal effective dates of the rate changes. The average cost of auto insurance is now 20.09 per cent higher than the third quarter of 1996, preceding the introduction of Bill 59 (the Automobile Insurance Rate Stability Act, 1996) on November 1, 1996.
The approved rate change shown for each insurance company is the average for that particular company. The impact of a rate change on an individual consumer will vary depending on where the consumer lives, the type of car he or she is driving, and other risk characteristics.
FSCO will continue to ensure that insurance companies’ rate changes are reasonable and justified, and that the rates insurers charge are balanced with their ability to meet their future claims costs.
Several companies had rate changes approved in first quarter 2003. To see the list visit http://www.ontarioinsurance.com/ then under Insurance see Auto Insurance and then Auto Insurance Rates.