Toronto, ON (Apr. 18, 2018) – Before insurance companies offering auto insurance in Ontario can change their insurance rates, they must be filed with and approved by the Financial Services Commission of Ontario (FSCO). FSCO has provided an overview of the filings which were reviewed in the first quarter of 2018.
Average Rate Changes
Thirty-two insurers representing approximately 76 per cent of the market based on premium volume had rates approved in the quarter. Approved rates increased on average by 2.23 per cent when applied across the total market. This compares to a increase of 1.03 per cent on average for the fourth quarter of 2017.
The rate change shown for each insurance company is the average for that company, based on all the drivers it insures.
However, an individual policyholder may experience a rate change that is either higher or lower than the industry-wide average rate change, or the average rate change for a particular insurer, depending on several factors, such as:
- the vehicle insured
- where he or she lives
- driving experience
- at-fault accident and conviction history of drivers
- whether the vehicle is used for pleasure or commuting, and
- choices made by the policyholder on coverages purchased and deductible or liability limits.
As most policyholders purchase annual policies, any changes approved for the insurer and effective prior to the policy renewal date, or changes in the policyholder’s circumstances since their last renewal (e.g., at-fault accidents, driving convictions), will impact the policyholder’s rate at renewal.
Consumers are urged to shop around for auto insurance. Ontario has a very competitive marketplace. Rates for the same coverage vary based on each insurer’s claims costs and the insurer’s rating system.
See Auto Insurance Rates for the First Quarter of 2018 for more information, including:
- rate filings approved or ordered by FSCO by company;
- FSCO’s rate approval process;
- Ontario’s insurance cost and rate reduction strategy;
- a breakdown of claim costs by coverage for accidents in 2016.
About the Financial Services Commission of Ontario
FSCO was established under the Financial Services Commission of Ontario Act, 1997 (FSCO Act) with a legislative mandate set out in the FSCO Act. FSCO’s legislative mandate is to provide regulatory services that protect the public interest and enhance public confidence in the sectors it regulates.
FSCO regulates the insurance sector; pension plans; loan and trust companies; credit unions and caisses populaires; the mortgage brokering sector; co-operative corporations in Ontario; and service providers who invoice auto insurers for statutory accident benefits claims. FSCO is accountable to the Minister of Finance.
Source: Financial Services Commission of OntarioTags: Auto Rates, Financial Services Commission of Ontario (FSCO)