Auto insurance rates are set to decrease in Ontario

Check your premiums, Ontario drivers, because your auto insurance rates might be going down.

The Financial Services Commission of Ontario (FSCO), which regulates car insurance in the province, says that it approved an average rate decrease of 0.1% in the third quarter. That follows an average increase of 0.76% in the second quarter.

Overall, fifteen insurers applied for rate changes last quarter, representing 34.52% of the market. Some of the rate changes have already gone into effect, while others kick in later this year and early next. (Jump to the table at the bottom to see each insurer’s approved rate change and when new and existing customers will be offered those rates).

While rates are decreasing on average this quarter, some drivers might find their premiums going up. FSCO approved increases for a number of insurers. Western Assurance got the go-ahead to hike rates 5.2%, while Chubb Insurance Company of Canada got approval for a 5.9% increase. Coachman Insurance Co. customers will see an average 4% increase.

Esurance Insurance Company of Canada, meanwhile, received approval for the biggest decrease — 8.9%. The company launched in Ontario in September, and the move likely represents an effort by the company to grow market share in the province.

FSCO reviews insurer’s costs — which includes claims costs, expenses, and investment income — when determining whether to approve a rate increase or decrease. The goal is to make sure that any change is “just and reasonable, not excessive and not going to impair a company’s financial solvency.”

Ontarians pay the highest car insurance costs in Canada. However, the reason behind why is difficult to explain. An independent report released by the Ontario government in April found that car accidents, as well as resulting deaths and injuries, are at historically low levels in the province. They’re also among the lowest in Canada, proportionally.  

The Liberal government promised in 2013 that it would lower car insurance rates for residents by an average of 15%. However, Premier Kathleen Wynne admitted after the deadline that the government had failed to meet that deadline and called it a “stretch goal.”

Here's a full list of FSCO's approved changes.