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As Canada’s most populated province, Ontario is the financial and leisure center of the country, arguably the place to be for most Canadians. However, encompassing huge cities like Toronto and the nation’s capital, Ottawa, means Ontario is also a hugely expensive place to call home. This is never truer than when considering car insurance, with the province home to the highest premiums in the country.
Consumers in Ontario pay over $1,500 on average for their auto insurance, a prohibitive cost that means finding the best coverage at the most affordable price is essential. There are a number of reasons why Ontarians pay more to insurance their vehicles than other Canadians, but there are initiatives underway to address the disparity, including numerous changes that will come into effect June 1, 2016.
Auto insurance quotes in Ontario are determined by a variety of factors, including:
• Your driving experience
• Your driving record
Use and location of your vehicle
The type of vehicle you drive
The amount of coverage you’ve selected
Your age and gender
The private insurance industry has often been criticized for high prices, but companies have always maintained that the rate is decided based on accident and other statistics. The government, led by the Financial Services Commission of Ontario (FSCO) approves all rates, and now the private and public sector are working together to attempt to lower premium costs.
A government initiative to lower auto insurance rates by 15 per cent before August 2015 failed, but starting June 1, 2015 new changes to the industry will take effect. The reforms will be sweeping and the FSCO says that the changes will give consumers the tools to have more choice over their auto insurance policy.
Statutory Accident Benefits have been changed significantly, with the deductible raised to $36,540, so that $50,000 awarded payout from would mean a $13,460 payout by the insurance company. Victims are being hit further as Ontario has also raised the minimum threshold for the deductible from $100,000 to $121,799.
Other changes being implemented from June 1, 2016 include:
- Under certain criteria (no payment by insurer, no injuries, damages less than $2,000), insurance providers can no longer raise premiums after minor at-fault accidents.
- The mandatory amount for monthly premium payments has been lowered to 3% to 1.3% maximum for policies of one year.
- Comprehensive auto insurance coverage will now have a standard deductible of $500 (previously $300).
- Non-earner benefits can be received up to two years after an accident. Six month waiting period for out of work customers reduced from six months to four weeks.
- Standard benefit for medical rehabilitation and attendant care is now five years for non-catastrophic injuries, children excluded.
It remains to be seen whether these changes will result in a lowering of auto insurance premiums in Ontario, but regardless, finding the best deal is still paramount. Ultimate Insurance is the best place to find the desired policy for you, but at the most affordable price. Head over to our super-fast online quote tool now to see quotes from over 25 of Canada’s leading auto insurance providers.