Some Ontario drivers are expected to pay more for their auto insurance premiums over the coming months as the governing body for the insurance industry has approved rate increases.
While the Financial Services Regulatory Authority of Ontario (FSRAO) has not approved industry-wide rate increases, it has recently approved increases for Intact (3.44 per cent), Verrasure (4.96 per cent), Belair (3.6 per cent) and Aviva (2-3.38 per cent).
Back in June, Pafco and Allstate had increases of around five per cent while Zenith Insurance, which is part of the Northbridge Insurer group, saw an approval increase of a whopping 10.37 per cent.
“Given the rate of inflation and supply chain issues pushing up the cost of claims combined with Canadians returning to the roads as pandemic restrictions eased, these rate increases aren’t unexpected,” Tanisha Kishan, an insurance expert with Ratesdotca, stated.
“Many drivers can expect to see their rates increase at their next renewal.”
Most of the insurance rates take a few months before they come into effect but people can check the FSRAO’s website to see if their rates will increase and when that increase will come into effect.
Auto insurance companies are required to receive FSRAO’s stamp of approval before they can raise their rates.
On its website, the regulatory agency says that the increases must be enough to cover claims obligations and expenses while also allowing for a reasonable profit.
It also notes that premium increases or decreases could come from a customer moving to a new area, buying a new or used vehicle or having received a speeding ticket.