Sept., 2012 – The Government passed regulations to enact auto insurance reforms effective September 1, 2010. These reforms are designed to reduce excess assessment costs in the auto insurance system and ensure more accident benefit dollars go to treating people injured in auto accidents.
Ontario drivers have more choice when it comes to their auto insurance coverage. Drivers can opt for a standard level of auto insurance coverage, or they can choose to buy additional levels of coverage based on their own circumstances.
Rate filings approved during the second quarter of 2012 (April 1, 2012 to June 30, 2012) remained flat, averaging +0.06%, based on the entire market. As a result, auto insurance rates declined by 0.12% in the first half of 2012.
The rate changes approved in the second quarter of 2012 take effect on the dates indicated in the table below.
The approved rate change shown for each insurance company is the average for that company based on all the drivers it insures. An individual policyholder may experience a rate change that is either higher or lower than the average, depending on the vehicle insured, where he or she lives and other risk factors as well as choices made by the policyholder on coverages purchased and deductible or liability limits. Also, as most policyholders purchase annual policies, the rate change from the last renewal will also reflect any changes approved for the insurer in the last year. For more information about auto insurance, please review FSCO�s brochure Understanding Auto Insurance.
Ontario has a very competitive auto insurance market. Rates vary from company to company because each company bases its rates on its own claims costs and uses a different set of risk characteristics to determine the rate for a specific consumer. FSCO reviews filings from companies to ensure that the rates proposed are justified based on claims costs and other operating costs. As a result of FSCO�s review, an insurance company may be required to amend its proposed rates before the rates are approved.
FSCO’s Understanding Rates/An Interactive Tool demonstrates how rates for the same coverage can vary from company to company. You can see how rates will vary depending upon whether you choose to purchase a policy with standard Accident Benefits coverage or with other optional coverages as well as your personal profile.
FSCO will continue to ensure that rate changes by insurance companies are reasonable and justified, and that rates charged are balanced with the ability of companies to meet future claims costs.
To see rate changes for the second quarter of 2012, go here where there are some interesting summary charts of “APPROVED RATE CHANGE BY COVERAGE”, “2010 Written Premium Distribution” and “Claims Costs per Vehicle” .
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, www.fsco.gov.on.ca.