Auto insurance

Some Ontarians can expect to see an increase in car insurance rates in the coming months

Some Ontario drivers are expected to pay more for their auto insurance premiums in the coming months as the insurance industry’s governing body approved rate increases.

Although the Financial Services Regulatory Authority of Ontario (FSRAO) has not approved an industry-wide rate increase, it has recently approved increases for Intact (3.44%), Verrasure ( 4.96 percent), Belair (3.6 percent) and Aviva (2 -3.38 percent).

Read more:

Ontario NDP reintroduces bill to end ‘zip code discrimination’ in auto insurance

In June, Pafco and Allstate saw increases of around 5%, while Zenith Insurance, part of the Northbridge Insurer group, saw a 10.37% increase in approvals.

“Given the rate of inflation and supply chain issues driving up the cost of claims, combined with Canadians getting back on the roads as pandemic restrictions ease, these rate increases are not unexpected. “said Tanisha Kishan, insurance expert at Ratesdotca.

The story continues under the ad

“Many drivers can expect to see their rates go up the next time they renew.”

Read more:

Who pays the highest insurance premiums in Ontario and why?

Most insurance rates take a few months to go into effect, but people can check the FSRAO website to see if their rates will increase and when that increase will take effect.

Auto insurance companies must receive approval from FSRAO before they can increase their rates.

On its website, the regulator says increases must be sufficient to cover claims obligations and expenses while allowing a reasonable profit.

He also notes that increases or decreases in premiums could come from a customer moving to a new area, buying a new or used vehicle, or receiving a speeding ticket.

© 2022 Global News, a division of Corus Entertainment Inc.