There was a report that the auto insurance rates in Ontario have gone down. The decrease is 1.9% in the average lowest rates quoted for auto insurance rates in Ontario in the first quarter of 2009 as compared to the first quarter of 2008, according to a Kanetix study.
What is interesting is that this seems to contradict industry trends of increased auto insurance rates. This decrease has occurred now for two quarters in a row.
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Since people are not purchasing as many new cars, the percentage of vehicles that are six years or older increased by nearly 4% while new vehicles dropped more then 3%. This will contribute to optional coverages being dropped such as collision and comprehensive. This results in people spending less on insurance.
Ontario also offered a winter tire discount in 2009. Since 61% of Ontario drivers change their tires seasonally this will contribute to a drop in rates.
Now the insurers have applied and been approved by the Financial Services Commission of Ontario for the first quarter of 2009 for an average 0.95 percent increase.
FSCO says that 30.91 percent of the market had rate changes approved and those averaged to a 3.09 percent increase when weighted by market share.
These rate changes approved in the first quarter of 2009 become effective in the first quarter of 2009 or later for renewal business.
The Dominion of Canada General Insurance Company has the largest market share in Ontario. Their rates decreased by 0.82 percent. The Co-operators General Insurance, with the second highest market share, received approval for a 3.42 percent rate increase. With the third-largest percentage of market share, The Wawanesa Mutual Insurance Company has a rate increase application of 4.94 percent approved.
Talk to your agent or broker about how this might affect your rates. This is a good time to be on top of what you are paying and to whom!
