Rates for auto insurance have been stagnant for the past two years but have recently begun to rise. It is likely that if you carry auto insurance in Ontario you could be seeing a rise with your latest renewal notice. Two dozen private insurance companies across Ontario have been given permission from their provincial regulator to raise premiums in the next few months.

The rise in rates is to meet the latest inflation rates which are the highest in decades. Higher car insurance premiums are hitting Canadian consumers further in their finances. A secondary reason for the increase comes down to more people driving regularly after the pandemic.  Rates were not authorized to increase when less people were driving from 2020-2022 but as of this year, the FSRA has approved rate increases to help insurance companies cover costs.

The good news is that you can be preemptive and work at getting a discount on early on before your rate increases:

Shop around now:

• Start comparing rates amongst providers in Canada. Ontario has dozens of insurance companies that are reputable and competing with one another. Young drivers especially should seek out insurance providers that offer discounts for putting low kms on each year.

Seek insurance bundles:

• Many insurance companies will allow you to pay for rental insurance, home insurance, car insurance and other forms of insurance with a bundled plan.

Install winter tires:

• Using winter tires every year can give you a discount. Although it comes with a small expense, it can often save money making the change and improve safe driving.

Increase your deductible early:

• The deductible will be the amount that you pay for replacement or a claim before the insurance company will pay. Most insurance providers operate plans with a $500 or $1000 deductable. Changing your plan now to the higher deductible will lower your monthly payments to equate for the increase.