Car Insurance Premiums

 After remaining relatively flat for two years, rates have started to increase in Ontario. After remaining relatively flat for two years, rates have started to increase in Ontario.

Car insurance premiums:

Prepare yourself for a potential rate rise on your renewal notice if you need to renew your auto insurance anytime soon.

The provincial regulator in Ontario has given more than a dozen private insurance companies permission to hike prices in the upcoming months, and experts in the field predict that trend will likely continue.

John Shmuel, managing editor of the insurance and financial website Ratesdotca, said, "I wish I had good news for consumers, but everything I'm hearing is that rates are increasing."

The author stated, "I genuinely don't know if many insurance companies will be able to hold their auto insurance costs unaltered at this time.In addition to the greatest inflation rates in decades, Ontario consumers' wallets would also take a blow from higher car insurance costs. The good news is that there are strategies to lower your costs.

Epidemic traffic jam has passed

Compared to the time before the epidemic, vehicle insurance providers handled less claims during the past 2.5 years. Lockdowns and the move to remote work reduced the number of motorists on the road and the number of accidents. In response, businesses cut rates, keeping them constant. Some companies even gave their clients rebates.

The Financial Services Regulatory Authority of Ontario (FSRA), which regulates the auto insurance industry and is in charge of assessing and approving any rate increases, allowed just one rate increase in 2021, totaling 0.29 percent, and none in 2020. However, a public database on the FSRA's website shows that 31 rate hikes have been granted so far this year.

Companies are attempting to hike prices at this time since their expenses are rising as driving rates normalise, according to Shmuel.

New, used, rental, and auto part prices are all rising as a result of inflation. Continuing supply chain problems make it challenging to receive parts on time.

According to Shmuel, some of the causes of the insurance companies' rising prices predate the pandemic, such as how cars' increasingly intricate designs have made it more challenging to fix them.

As insurance companies spend more to replace stolen vehicles, a recent rise in auto thefts in the Greater Toronto Area could also push rates up, according to Shmuel.

According to Mary Kelly, a professor of finance at Wilfrid Laurier University in Waterloo, Ontario, another factor pushing higher expenses for insurance firms is the price of providing health care to accident victims, such as rehabilitation and disability compensation.

Because we've returned to pre-pandemic levels, Kelly explained, "we know medical costs usually rise, so if] the likelihood that you'll be in an accident is higher, then those costs are also going to rise."

According to Kelly, your insurance provider, your residence, and other factors that affect your premium, such as your claim history and the vehicle you drive, will determine whether or not your rates go up.

Compare prices by shopping around.

 Ontario has a large number of car insurance providers, unlike other Canadian provinces that only have one public insurer. Comparing plans and costs is made available as a result. To get a rate that works for you, talk to an insurance broker or visit a website that compares prices. In order to find lower rates in the months when they don't drive as much, Kelly advised young drivers to look for plans that depend their premiums on how much they drive.

Choose appropriate coverage

 Older car owners with low market value may want to think again about adding optional coverages like collision and comprehensive. For instance, it might not be worthwhile or even practicable to replace your 15-year-old car after an accident if it is only worth $500.

Join your insurance policies.

 Customers who acquire home, auto, and/or renters' insurance from the same firm frequently receive discounts from the business.

CBC'S

"There are just additional costs everywhere you go in the system," he said.

CBC RESEARCHES

Why auto thefts in Toronto have increased at a "staggering" rate, and what the police are doing about it

What Ontario car thieves seek and how to stop them.