Car insurance is one of those things that Ontarians have long since complained about. Residents don’t have an option, car insurance is needed in order to drive, but the insurance premiums can feel quite high and as though they are constantly increasing. This is why the stats for 2018 may come as a surprise to most residents, as they not only managed to avoid huge price hikes, but many Ontario car insurance premiums declined at the end of 2018. In fact, Ontario is the only province where some auto insurance relief is being felt.
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Many Areas of Canada Saw Sharp Increase in Premiums
While Ontarians may be busy complaining about what they pay for auto insurance, it seems there were those who were much worse off. According to statistics, Alberta was a province that fared quite poorly, with rates rising 10.05% in the last quarter of 2018. Meanwhile, those in Atlantic Canada saw a rise of 3.75% over the full year.
While the annual increase in Ontario for 2018 was 1.7%, the rates then ended up dropping in the final quarter by 5.63%. What this means is that when customers are shopping around for auto insurance, the rates in Ontario are often below the market average, which is great news for residents looking for a break.
How 2019 Is Panning Out
As for the trends for 2019, it could shape up to be an interesting year where auto insurance is concerned in Ontario. Traditionally the province has been known for its insurance premium hikes and the government has plans to now address the issue and dig a little deeper.
Debates will be scheduled to discuss whether where a person lives should affect their rate. The government has plans to review how the insurance premiums are regulated and will help to set up a regulatory framework that uses a variety of high-tech resources.
The Financial Services Commission of Ontario (FSCO), which is a regulatory agency of the Ministry of Finance, is urging Ontarians to shop around and get quotes from different insurance companies before choosing one. A person’s quote is determined by the insurer’s rating system, as well as the insurer’s claims experience.
The FSCO has identified two big trends taking place in the province at the moment, which are an increase in distracted driving incidents that is creating more claims; and the fact that many of the insurance companies are reporting an increase in their claims costs, as it is costing more money to repair vehicles.
It’s important to note that whatever your auto insurance company gave you as a rate last year, this may no longer apply, so staying educated on what you pay is pivotal.
Expect More Ups and Downs
So, while the end of 2018 may have been good news where insurance premiums are concerned, overall, the general trend seems to point towards an increase, but hopefully not at the same rate that Alberta has been hit with.