Ontario’s auto insurance premiums are rising this quarter
Published: January 24, 2019
Updated: February 1, 2019
Author: Luke Jones
CATEGORY: Car Insurance
Auto insurance premiums in Ontario are continuing to rise heading into 2019. During the fourth quarter of 2018, insurance rates increased by 3.35%, putting further pressure on motorists in the province. Furthermore, Ontario’s financial regulator has announced major insurers have received approval for a double-digit increase this year.
23 insurance providers covering around 51% of the auto market in Ontario had rate increases improved during Q4, 2018. Aviva Insurance Company of Canada is the province’s market leading auto insurance provider (6.6%) and was approved for an 8.63% increase.
Aviva General Insurance (5.34%) was awarded a 16.8% rate increase. However, that rise is significantly less that Hartford Fire Insurance Company, which received the highest increase at 34.87%.
Economical Mutual Insurance Company is Ontario’s second largest auto insurance provider by market share (6.9%) and said it did not receive a rate increase. No company was awarded a decrease, but Economical kept rates static after the introduction of the Canadian Loss Experience Automobile Rating (CLEAR). This is a system
Economical Mutual Insurance Company, the second largest insurer by market share (6.9%), reported no overall rate impact after the implementation of Canadian Loss Experience Automobile Rating (CLEAR) update.
Other rate increases:
Allstate Insurance Company of Canada 4.5%
CAA Insurance Company 1.65%
Certas Direct Insurance Company 14.57%
COSECO Insurance Company 5.03%
Pembridge Insurance Company 7.95%
Personal Insurance Company, The 10.05%
Scottish & York Insurance Co. Limited 5.84%
Traders General Insurance Company 8.64%
Unifund Assurance Company 4.04%
New Auto Insurance Review
Earlier this month, the government of Ontario announced a new review into the province’s auto insurance system. Finance Minister Vic Fedeli says a new regulatory framework will be created to allow the auto insurance industry to modernize.
“The previous government’s failed system of stretch goals on auto insurance is clearly broken,” he said. “Auto insurance rates in Ontario are among the highest in the country, and action is needed.”
The review process will begin February 15.