Auto Insurance Rates for the First Quarter of 2010: FSCO

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The Government has passed regulations to enact automobile insurance reforms effective September 1, 2010. The reforms will provide consumers with more choice and flexibility to purchase coverage that best meets their protection needs and budgets.

All auto insurance companies are required to file new rates with FSCO in April that take into account these reforms. The impact of these reforms will be reflected in upcoming rate approvals.

Rate applications approved during the first quarter of 2010 (January 1, 2010 to March 31, 2010) averaged +5.37%, based on the entire market.

In the first quarter of 2010, for the 97.18% of the market that had rate changes approved, the average rate change was +5.53%, when weighted by market share.

The rate changes approved in the first quarter of 2010 become effective in the first quarter of 2010 or later for renewal business.

The rate changes approved in 2004, 2005, 2006, 2007, 2008 and 2009 were -10.60%, -2.43%, -1.27%, +0.55%, +5.59% and +8.77%, respectively, for the entire market.

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.

Rate changes for the first quarter of 2010

About FSCO

FSCO is an agency of the Ontario Ministry of Finance, and regulates insurance, pensions, credit unions, caisses populaires, co-operatives, mortgage brokers, and loan and trust companies. For more information visit,