Published on May 30th, 2013 | by Jordan
When Can Ontario Drivers Expect Their 15% Auto Insurance Decrease?
As announced earlier this month by provincial Finance Minister Charles Sousa, the province of Ontario will be directing auto insurance companies across the province to cut their rates by an average of 15%. Sousa also remarked that “insurers would have to offer even lower rates to drivers with safe records,” and “if approved, our plan would reduce household premiums for insuring a vehicle by $225 a year on average.”
Though this announcement comes much to the delight of Ontario motorists (who pay more for auto insurance than those in any other province), nothing was mentioned as to when this reduction would take actually effect. As it stands, the Financial Services Commission of Ontario (who is responsible for auto insurance and rate approvals) will work with the Liberal government and the Minister of Finance on the execution of the promise. More news is expected to come following the passage of the 2013 Ontario budget.
What’s possible, however, is that this decrease would not be delivered all at once, but gradually over a defined period of time. In other words, though this reduction is good news for motorists, you shouldn’t expect to see a 15% reduction on your next renewal.
Christine Zhou, Director of Actuarial Services here at CAA South Central Ontario, believes CAA Insurance is ahead of the industry rate reductions: “We started to reduce our rates effective January 1 this year and, a week ago, we filed again and proposed to reduce our rates even further. An exciting part of this filing is that we also proposed to introduce our usage-based insurance program, where Ontarians can benefit from significant savings if they are safe drivers. This rate filing is currently being reviewed by FSCO.” You can get a quote from CAA Insurance here.
What do you think of the proposed rate decrease? Is it about time Ontario drivers got a break? Let us know your thoughts in the comments section below!
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