Auto insurance rates rise 6.4 per cent in Ontario

 Ian Palmer on July 5, 2013

Kanetix has announced its quarterly year-over-year auto insurance rate study results for Q2 2011 for Ontario, Quebec and Alberta.

The online insurance quote comparison service noted, among other things, the following:

• Ontario auto insurance rates increased 6.4 per cent in Q2 2011, compared to Q2 2010. Rates have been stabilizing since last year’s auto insurance reforms with Q4 2010 and Q1 2011 indicating a 9.5 per cent and 6.7 per cent increase respectively. The year-over-year difference in rate increases is dropping.
• Drivers in Quebec and Alberta were able to take advantage of rates that were relatively stable in Q2. Modest increases were observed in both provinces; 0.2 per cent in Quebec and 1.4 per cent in Alberta.

When consumers are feeling strapped for cash because of rising gas prices and insurance rates, they may be able to relieve some of the strain on their wallets by reviewing their auto insurance policy.

“Although rates are higher compared to last year, consumers can still find ways to lower their auto insurance premiums if they ensure they are taking advantage of available discounts and take the time to understand other cost-saving options that are available,” said George Small, co-founder, Kanetix, in a statement. “At Kanetix, we feel that consumers can take advantage of more discounts than they do today – discounts which could help reduce their rates.”

The Kanetix rate study revealed more than 50 per cent of consumers in Ontario did not take advantage of the multi-line discount that is available to them. For most insurance companies, this discount can range from 5 to 15 per cent. It was also noted that more than 50 per cent did not opt in to the Roadside Assistance discount, and approximately 20 per cent did not take advantage of the winter tire discount that many insurance companies offer.

The study also determined that more customers could save money on their premium by opting for a higher deductible. Policyholders who switch from a $500 deductible to a $1000 deductible could save between 5 and 10 per cent. Nevertheless, drivers should choose an affordable deductible in the event of a claim.