Insurance Rates

The Effect of a Ticket on your Insurance Rates: Private Insurance companies only understand one word – “profit”; their motto is “greed”.  Private Insurance companies will take any opportunity to increase their profits.

Providing insurance is an extremely profitable and lucrative business, especially in the Province of Ontario, Canada. When a motorist in Ontario is convicted of an offence, the conviction will remain on the “driver’s record” with the Ministry of Transportation for a period of two (2) years from the date that the motorist was charged with the offence (not from the conviction date).  See Demerit Points. At the same time, privately owned insurance companies insist that the same motorist have the conviction registered on their “insurance record” for an extra year, in this case, three (3) years from the date that the motorist was charged.  Upon learning of the conviction, many private insurance companies in Ontario, will increase the premiums of the driver, anywhere from three (3) to seven (7) years. Staying with a private insurance company, long term, does not normally benefit the driver and it is best to continue to keep your options open and continue searching for a better deal, with a different insurer. Private Insurance Companies in Ontario all have their own conviction surcharge schedule.  Depending on the type of conviction (the more serious, the more you’ll pay) and your prior driving/insurance record, your insurance company may insist that you be covered under New Facility or Facility Association.  This means that on top of the insurance premiums that you are already paying, Facility Association may charge additional amounts anywhere from 100-250 % of what you already pay (ie- normal premiums $ 1,500.00 + Facility $ 3,750.00 = $ 5,250.00) In order to be the motor vehicle operator and to drive the vehicle, the vehicle must be insured.  The reason, so many of us dread the thought of receiving a traffic ticket and the conviction that may follow; is the real possibility that our insurance company, upon becoming aware of the conviction, may increase our insurance premiums for the following three (3) to six (6) years following the conviction.  This is generally the reason we fight our tickets so vigorously. Currently, the cost of living is so high and the last thing any driver needs to include in their budget, is the ever increasing insurance premiums (which are seldom ever justifiable) of the private insurance companies. Given the obscene profits which the private insurance companies make in Ontario, the best solution available to consumers, (who have no choice but to purchase automobile insurance if they want to drive) is to insist on Public Auto Insurance. Several Provinces, ,British Columbia (ICBC), Manitoba, Saskatchewan and Quebec have provincially owned and operated automobile insurance and the residents benefit from the cheaper premiums.  Ontario Private Insurance Companies offer the most expensive automobile insurance in Canada. Public Auto Insurance offers cheaper insurance premiums to motorists and is controlled by the Provincial Government. Public Auto Insurance works in other Provinces in Canada and it would certainly work in Ontario. Private Insurance companies are notorious, if subjected to strong public criticism, for crying poor, while laying off employees and jacking up their insurance rates. Every time the private insurance companies complain of loss, they are erecting new buildings or purchasing existing skyscrapers. This year, the Financial Services Commission of Ontario ( the “Commission”) approved insurance increases, an average of 2.49%, to half of the Insurance Companies in Ontario. Here is a breakdown of the four (4) largest increases, which the Commission approved for the following Private Insurance companies:

  • Farm Mutual Reinsurance = 5.95%
  • Allstate Insurance = 5%
  • RBC (Royal Bank) General Insurance = 3.75%
  • State Farm Insurance = 3.08%

See the insurance premium increases that the Financial Services Commission of Ontario approved for the third quarter of 2008 (this information is from their website):

Auto Insurance Rates for the Third Quarter of 2008

 

Rate applications approved during the third quarter of 2008 (July 1, 2008 to September 30, 2008) averaged +0.87%, based on the entire market.

The rate changes approved in 2004, 2005, 2006 and 2007 were -10.60%, -2.43%, -1.27% and +0.55%, respectively, for the entire market. In the third quarter of 2008, for the 77.97% of the market that had rate changes approved, the average rate change was +1.12%, when weighted by market share. The rate changes approved in the third quarter of 2008 become effective in the third quarter of 2008 or later for renewal business. The approved rate change shown for each insurance company is the average for that particular company.  The impact of a rate change on an individual consumer will vary depending on where the consumer lives, the type of car he or she is driving, and other risk characteristics. FSCO will continue to ensure that insurance companies’ rate changes are reasonable and justified, and that the rates insurers charge are balanced with their ability to meet their future claims costs.

ONTARIO PRIVATE PASSENGER AUTOMOBILE INSURANCE RATE FILINGS APPROVED

July 1, 2008 – September 30, 2008

Insurer

2007 Market Share

Effective New Business Date

Effective Renewal Business Date

Approved Rate Change

Allstate Insurance Company of Canada13.04%1-Sep-0820-Oct-080.00%
Aviva Insurance Company of Canada10.41%1-Sep-081-Oct-080.00%
AXA Insurance (Canada)21.92%29-Sep-08n/a0.00%
CAA Insurance Company (Ontario)1.08%25-Aug-0810-Oct-085.00%
CAA Insurance Company (Ontario)11.08%15-Sep-081-Nov-080.00%
Certas Direct Insurance Company1.04%6-Oct-085-Dec-08-2.80%
Certas Direct Insurance Company21.04%22-Aug-0823-Oct-080.00%
Certas Home & Auto Insurance Company20.00%22-Aug-08n/a0.00%
Certas Home & Auto Insurance Company0.00%6-Oct-085-Dec-08-2.80%
Co-operators General Insurance Company4.66%17-Nov-0817-Nov-081.01%
Co-operators General Insurance Company14.66%8-Sep-088-Sep-080.00%
Coachman Insurance Company10.21%1-Oct-081-Oct-080.00%
COSECO Insurance Company11.52%15-Sep-081-Dec-080.00%
CUMIS General Insurance Company10.23%1-Jan-091-Jan-090.00%
Economical Mutual Insurance Company6.39%1-Sep-081-Nov-087.56%
Economical Mutual Insurance Company16.39%1-Sep-081-Nov-080.00%
Elite Insurance Company10.12%1-Sep-081-Oct-080.00%
Farm Mutual Reinsurance Plan Inc.11.73%15-Sep-0815-Sep-080.00%
Federation Insurance Company of Canada30.00%15-Oct-08n/a0.00%
Gore Mutual Insurance Company1.01%15-Aug-0815-Oct-08-0.34%
Gore Mutual Insurance Company1.01%1-Jan-091-Jan-093.03%
Guarantee Company of North America, The10.78%1-Sep-081-Oct-080.00%
Lombard Insurance Company1.06%15-Nov-0815-Nov-082.98%
Motors Insurance Corporation10.62%14-Jul-087-Sep-080.00%
Optimum Insurance Company10.17%1-Oct-081-Dec-080.00%
Pafco Insurance Company20.78%1-Aug-081-Oct-080.00%
Pafco Insurance Company10.78%1-Sep-0820-Oct-080.00%
Pembridge Insurance Company10.65%1-Sep-0820-Oct-080.00%
Personal Insurance Company, The23.25%22-Aug-0823-Oct-080.00%
Personal Insurance Company, The3.25%6-Oct-085-Dec-08-2.80%
Perth Insurance Company1.36%1-Sep-081-Nov-083.75%
Perth Insurance Company11.36%1-Sep-081-Nov-080.00%
Pilot Insurance Company15.59%1-Sep-081-Oct-080.00%
Pilot Insurance Company25.59%1-Aug-081-Sep-080.00%
Primmum Insurance Company11.47%1-Oct-081-Dec-080.00%
RBC General Insurance Company12.80%27-Oct-0811-Dec-080.00%
RBC Insurance Company of Canada30.00%28-Jul-08n/a0.00%
RBC Insurance Company of Canada10.00%27-Oct-0811-Dec-080.00%
Royal & SunAlliance Insurance Company of Canada1.66%1-Aug-0820-Sep-08-1.27%
Royal & SunAlliance Insurance Company of Canada11.66%1-Oct-0820-Nov-080.14%
S & Y Insurance Company10.60%1-Sep-081-Oct-080.00%
Scottish & York Insurance Co. Limited11.55%1-Sep-081-Oct-080.00%
Security National Insurance Company15.66%1-Oct-081-Dec-080.00%
Sovereign General Insurance Company, The10.00%15-Dec-0815-Dec-080.00%
State Farm Mutual Automobile Insurance Company111.72%21-Jul-089-Aug-080.00%
TD General Insurance Company2.10%15-Sep-0815-Oct-082.40%
TD General Insurance Company12.10%1-Oct-081-Dec-080.00%
Traders General Insurance Company13.28%1-Sep-081-Oct-080.00%
Trafalgar Insurance Company of Canada1.03%15-Sep-0815-Nov-084.88%
Unifund Assurance Company3.21%28-Jul-081-Oct-084.91%
Waterloo Insurance Company0.56%1-Sep-081-Nov-084.92%
Waterloo Insurance Company10.56%1-Sep-081-Nov-080.00%
Wawanesa Mutual Insurance Company, The13.62%1-Dec-081-Dec-080.00%
York Fire & Casualty Insurance Company1.07%1-Nov-081-Jan-093.06%
Zurich Insurance Company10.02%15-Oct-0815-Dec-080.00%
Total Market Share Represented:77.97%
Weighted Average Rate Change:1.12%
  1. Implementation of CLEAR update.
  2. Rate changes with no overall impact.
  3. Introduction of a new rate program.

Auto Insurance Rates for the Fourth Quarter of 2008

ONTARIO PRIVATE PASSENGER AUTOMOBILE INSURANCE RATE FILINGS APPROVED

October 1, 2008 – December 31, 2008

Rate applications approved during the fourth quarter of 2008 (October 1, 2008 to December 31, 2008) averaged +2.57%, based on the entire market.

In the fourth quarter of 2008, for the 69.37% of the market that had rate changes approved, the average rate change was +3.71%, when weighted by market share.

The rate changes approved in the fourth quarter of 2008 become effective in the fourth quarter of 2008 or later for renewal business.

The rate changes approved in 2004, 2005, 2006, 2007 and 2008 were -10.60%, -2.43%, -1.27%, +0.55% and +5.59%, respectively, for the entire market.

Insurer

2007
Market
Share

Effective
New
Business
Date

Effective
Renewal
Business
Date

Approved
Rate
Change

Allstate Insurance Company of Canada3.04%5-Jan-0916-Feb-096.01%
Aviva Insurance Company of Canada0.41%1-Feb-091-Mar-094.60%
AXA Pacific Insurance Company20.04%13-Oct-08n/a0.00%
Belair Insurance Company Inc.10.15%27-Nov-0821-Jan-090.00%
Belair Insurance Company Inc.0.15%28-Nov-0822-Jan-09-2.57%
CAA Insurance Company (Ontario)21.08%1-Dec-0815-Jan-090.00%
Co-operators General Insurance Company24.66%1-Dec-084-Jan-090.00%
Coachman Insurance Company0.21%1-Apr-091-Apr-096.56%
CUMIS General Insurance Company0.23%1-Feb-091-Feb-093.34%
Dominion of Canada General Insurance Company, The4.68%1-Dec-081-Jan-093.94%
Echelon General Insurance Company10.88%1-Jan-091-Mar-090.00%
Economical Mutual Insurance Company6.39%1-Mar-091-May-094.29%
Elite Insurance Company0.12%1-Feb-091-Mar-093.80%
Farm Mutual Reinsurance Plan Inc.31.73%1-Feb-091-Feb-094.77%
Farmers’ Mutual Insurance Company (Lindsay)0.23%1-Jan-091-Jan-096.70%
Farmers’ Mutual Insurance Company (Lindsay)10.23%1-Jan-091-Jan-090.00%
Federated Insurance Company of Canada10.03%15-Jan-0915-Jan-09-2.37%
ING Insurance Company of Canada17.91%1-Nov-081-Jan-090.00%
ING Novex Insurance Company of Canada10.54%1-Nov-081-Jan-090.00%
Jevco Insurance Company0.03%15-Dec-081-Feb-0915.20%
Kingsway General Insurance Company1.52%1-Nov-081-Dec-084.94%
Lombard General Insurance Company of Canada10.11%15-Nov-0815-Nov-080.00%
Lombard Insurance Company11.06%15-Nov-0815-Nov-080.00%
Nordic Insurance Company of Canada, The12.31%27-Nov-0821-Jan-090.00%
Nordic Insurance Company of Canada, The2.31%28-Nov-0822-Jan-09-2.56%
Pembridge Insurance Company0.65%1-Feb-091-Apr-0912.00%
Perth Insurance Company1.36%1-Mar-091-May-096.33%
Pilot Insurance Company5.59%1-Feb-091-Mar-099.20%
RBC General Insurance Company22.80%14-Dec-0828-Jan-090.00%
RBC Insurance Company of Canada20.00%14-Dec-0828-Jan-090.00%
S & Y Insurance Company0.60%1-Feb-091-Mar-092.90%
Scottish & York Insurance Co. Limited1.55%1-Feb-091-Mar-094.90%
State Farm Mutual Automobile Insurance Company11.72%9-Feb-099-Feb-096.50%
TD Home and Auto Insurance Company1.74%1-Jan-091-Feb-092.30%
TD Home and Auto Insurance Company11.74%15-Dec-0815-Feb-090.00%
Traders General Insurance Company3.28%1-Feb-091-Mar-093.40%
Trafalgar Insurance Company of Canada11.03%1-Nov-081-Jan-090.00%
Waterloo Insurance Company0.56%1-Mar-091-May-093.66%
Western Assurance Company0.76%1-Mar-0915-Apr-096.20%
Zenith Insurance Company0.37%15-Dec-0815-Dec-085.95%
Zenith Insurance Company10.37%15-Dec-0815-Dec-080.00%
Total Market Share Represented:69.37%
Weighted Average Rate Change:3.71%
  1. Implementation of CLEAR update.
  2. Rate changes with no overall impact.
  3. On behalf of the Ontario Mutuals.

The Insurance Bureau of Canada (www.ibc.ca) posted on-line, profits for its’ members in 2003 up to 673% (2.6 Billion Dollars) and a year later, in 2004 up 61.5% or 4.2 Billion Dollars.  When the public freaked, the Insurance Bureau of Canada made the decision to hide its’ members profit’s and put an end to posting its members ever increasing profits on its website. Ontario is now an official have not province and will begin to rely upon and receive, equalization payments in 2009.  Future equalization payments will be calculated and linked to the moving average of GDP (Gross Domestic Product) growth. Private Insurance Companies have found that advertising with the “we care for you” message is very profitable, no one is fooled. The system is designed to yield maximum profits, annually, for prviate insurance companies and not protection for consumers. In Ontario, the Provincial Government must seriously consider the introduction of Public Auto Insurance, which would be a great thing for consumers of all ages who drive on Ontario’s roads. See Auto Insurance Consumers’ Bill of Rights ” (in PDF format).

Auto Insurance Rates for the First Quarter of 2009

 

Rate applications approved during the first quarter of 2009 (January 1, 2009 to March 31, 2009) averaged +0.95%, based on the entire market.

In the first quarter of 2009, for the 30.91% of the market that had rate changes approved, the average rate change was +3.09%, when weighted by market share.

The rate changes approved in the first quarter of 2009 become effective in the first quarter of 2009 or later for renewal business.

The rate changes approved in 2004, 2005, 2006, 2007 and 2008 were -10.60%, -2.43%, -1.27%, +0.55% and +5.59%, respectively, for the entire market.

The approved rate change shown for each insurance company is the average for that particular company.  The impact of a rate change on an individual consumer will vary depending on where the consumer lives, the type of car he or she is driving, and other risk characteristics.

FSCO will continue to ensure that insurance companies’ rate changes are reasonable and justified, and that the rates insurers charge are balanced with their ability to meet their future claims costs.

ONTARIO PRIVATE PASSENGER AUTOMOBILE INSURANCE RATE FILINGS APPROVED

January 1, 2009 – March 31, 2009

Insurer

2007
Market
Share

Effective
New
Business
Date

Effective
Renewal
Business
Date

Approved
Rate
Change

AIG Commercial Insurance Company of Canada10.01%1-Apr-0915-Apr-090.00%
AXA Insurance (Canada)1.92%1-Mar-091-Mar-094.60%
AXA Pacific Insurance Company0.04%23-Feb-099-Apr-097.90%
Certas Direct Insurance Company21.04%20-Mar-0919-Mar-090.00%
Certas Home & Auto Insurance Company20.00%20-Mar-0919-May-090.00%
Chubb Insurance Company of Canada0.55%30-Mar-0928-Jun-092.00%
Co-operators General Insurance Company4.66%18-May-0918-May-093.42%
COSECO Insurance Company1.52%1-Apr-091-May-095.76%
Dominion of Canada General Insurance Company, The4.68%15-May-0915-Jun-09-0.82%
Gore Mutual Insurance Company1.01%15-Mar-091-Jun-096.65%
Guarantee Company of North America0.78%1-Feb-091-Mar-094.22%
Hartford Fire Insurance Company10.00%1-Feb-091-Mar-090.00%
Motors Insurance Corporation0.62%4-Feb-0931-Mar-092.70%
Optimum Insurance Company Inc.0.17%1-Apr-0910-Apr-093.00%
Personal Insurance Company23.25%20-Mar-0919-May-090.00%
RBC General Insurance Company2.80%5-Apr-0920-May-094.48%
Trafalgar Insurance Company of Canada1.03%1-May-091-Jun-094.50%
Unifund Assurance Company3.21%27-Feb-091-May-095.34%
Wawanesa Mutual Insurance Company, The3.62%1-Apr-091-Apr-094.94%
Total Market Share Represented:30.91%
Weighted Average Rate Change:3.09%
  1. Implementation of CLEAR update.
  2. Rate changes with no overall impact.

Auto Insurance Rates for the Second Quarter of 2009

Rate applications approved during the second quarter of 2009 (April 1, 2009 to June 30, 2009) averaged +3.20%, based on the entire market.

In the second quarter of 2009, for the 54.67% of the market that had rate changes approved, the average rate change was +5.86%, when weighted by market share.

The rate changes approved in the second quarter of 2009 become effective in the second quarter of 2009 or later for renewal business.

The rate changes approved in 2004, 2005, 2006, 2007 and 2008 were -10.60%, -2.43%, -1.27%, +0.55% and +5.59%, respectively, for the entire market.

The approved rate change shown for each insurance company is the average for that particular company.  The impact of a rate change on an individual consumer will vary depending on where the consumer lives, the type of car he or she is driving, and other risk characteristics.

FSCO will continue to ensure that insurance companies’ rate changes are reasonable and justified, and that the rates insurers charge are balanced with their ability to meet their future claims costs.

ONTARIO PRIVATE PASSENGER AUTOMOBILE INSURANCE RATE FILINGS APPROVED

April 1, 2009 – June 30, 2009

Insurer

2008
Market
Share

Effective
New
Business
Date

Effective
Renewal
Business
Date

Approved
Rate
Change

Allstate Insurance Company of Canada2.91%7-Jul-097-Sep-091.80%
Arch Insurance Company10.00%1-May-09n/a0.00%
Aviva Insurance Company of Canada0.39%1-Jul-091-Jul-095.00%
Belair Insurance Company Inc.0.12%12-Jul-095-Sep-09-0.47%
CAA Insurance Company (Ontario)1.08%29-Jun-0915-Aug-0912.10%
Certas Direct Insurance Company1.08%24-May-0924-Jul-094.00%
Certas Home & Auto Insurance Company0.00%24-May-0924-Jul-094.50%
COSECO Insurance Company1.56%1-Dec-091-Dec-0910.40%
Dominion of Canada General Insurance Company, The4.75%15-May-0915-Jun-095.36%
Economical Mutual Insurance Company6.21%1-Jul-0915-Sep-096.73%
Elite Insurance Company0.16%1-Jul-091-Jul-094.50%
Intact Insurance Company7.55%22-Jun-098-Aug-095.51%
Lombard Insurance Company1.03%15-Jun-0915-Jun-095.10%
Nordic Insurance Company of Canada, The2.54%12-Jul-095-Sep-096.71%
North Waterloo Farmers Mutual Insurance Company20.00%1-Jul-091-Jul-095.78%
Novex Insurance Company0.50%8-Jun-0925-Jun-095.81%
Personal Insurance Company, The3.10%24-May-0924-Jul-098.00%
Pilot Insurance Company4.89%1-Sep-091-Sep-097.50%
Portage La Prairie Mutual Insurance Company0.19%1-Jun-091-Aug-096.10%
Primmum Insurance Company1.46%15-Aug-0901-Sep-093.00%
S&Y Insurance Company0.60%1-Jul-0901-Jul-093.90%
Scottish & York Insurance Company Limited1.46%1-Sep-091-Sep-0910.00%
Security National Insurance Company5.57%15-Aug-091-Sep-093.00%
TD General Insurance Company2.20%1-Sep-0915-Sep-0910.00%
TD Home and Auto Insurance Company1.54%1-Sep-0915-Sep-093.00%
Traders General Insurance Company of Canada3.14%1-Jul-091-Jul-095.00%
Waterloo Insurance Company0.64%1-Jul-0915-Sep-093.02%
Total Market Share Represented:54.67%
Weighted Average Rate Change:5.86%
  1. Introduction of a new rate program.
  2. First filing independent of Farm Mutual Reinsurance Plan Inc

Auto Insurance Rates for the Third Quarter of 2009

Rate applications approved during the third quarter of 2009 (July 1, 2009 to September 30, 2009) averaged +2.13%, based on the entire market.

In the third quarter of 2009, for the 34.38% of the market that had rate changes approved, the average rate change was +6.2%, when weighted by market share.

The rate changes approved in the third quarter of 2009 become effective in the third quarter of 2009 or later for renewal business.

The rate changes approved in 2004, 2005, 2006, 2007 and 2008 were -10.60%, -2.43%, -1.27%, +0.55% and +5.59%, respectively, for the entire market.

The approved rate change shown for each insurance company is the average for that particular company.  The impact of a rate change on an individual consumer will vary depending on where the consumer lives, the type of car he or she is driving, and other risk characteristics.

FSCO will continue to ensure that insurance companies’ rate changes are reasonable and justified, and that the rates insurers charge are balanced with their ability to meet their future claims costs.

ONTARIO PRIVATE PASSENGER AUTOMOBILE INSURANCE RATE FILINGS APPROVED

July 1, 2009 – September 30, 2009

Insurer

2008
Market
Share

Effective
New
Business
Date

Effective
Renewal
Business
Date

Approved
Rate
Change

AXA Insurance (Canada)2.39%1-Sep-0915-Oct-097.30%
AXA Pacific Insurance Company0.15%1-Sep-0915-Oct-097.80%
Co-operators General Insurance Company4.57%23-Nov-0923-Nov-094.98%
COSECO Insurance Company1.56%1-Dec-091-Dec-09-1.07%
Echelon General Insurance Company0.86%15-Aug-0915-Sep-096.36%
Farm Mutual Reinsurance Plan Inc. 11.83%1-Nov-091-Nov-098.17%
Federation Insurance Company of Canada0.00%20-Jul-0920-Sep-09-6.41%
Jevco Insurance Company 20.00%1-Oct-091-Oct-090.00%
Kingsway General Insurance Company 21.39%15-Jul-0915-Aug-0910.00%
Kingsway General Insurance Company 21.39%1-Nov-091-Dec-095.06%
Motors Insurance Corporation0.56%14-Sep-098-Nov-090.99%
Optimum Insurance Company Inc.0.19%1-Sep-096-Oct-095.21%
Pembridge Insurance Company Limited0.71%1-Sep-091-Nov-096.08%
Perth Insurance Company1.26%15-Jul-0915-Sep-094.40%
Royal & SunAlliance Insurance Company1.59%1-Aug-0920-Sep-094.93%
State Farm Mutual Automobile Insurance Company12.46%26-Oct-0926-Oct-095.59%
Trafalgar Insurance Company1.10%15-Oct-0915-Nov-096.16%
Wawanesa Mutual Insurance Company, The3.76%1-Nov-091-Nov-099.72%
Total Market Share Represented:34.38%
Weighted Average Rate Change:6.20%
  1. On behalf of the Ontario Mutuals.
  2. Business transfer from Kingsway into Jevco.

Auto Insurance Rates for the Fourth Quarter of 2009

The Government has announced a number of automobile insurance reforms. These reforms will provide consumers with more choice and flexibility to purchase coverage that best meets their protection needs and budgets.

These reforms are in the process of being implemented and are not reflected in this quarter’s rate approvals.

Rate applications approved during the fourth quarter of 2009 (October 1, 2009 to December 31, 2009) averaged +2.49%, based on the entire market.

In the fourth quarter of 2009, for the 55.48% of the market that had rate changes approved, the average rate change was +4.49%, when weighted by market share.

The rate changes approved in the fourth quarter of 2009 become effective in the fourth quarter of 2009 or later for renewal business.

The rate changes approved in 2004, 2005, 2006, 2007, 2008 and 2009 were -10.60%, -2.43%, -1.27%, +0.55%, +5.59% and +8.77%, respectively, for the entire market.

The approved rate change shown for each insurance company is the average for that particular company. The impact of a rate change on an individual consumer will vary depending on where the consumer lives, the type of car he or she is driving, and other risk characteristics.

FSCO will continue to ensure that insurance companies’ rate changes are reasonable and justified, and that the rates insurers charge are balanced with their ability to meet their future claims costs.

ONTARIO PRIVATE PASSENGER AUTOMOBILE INSURANCE RATE FILINGS APPROVED

October 1, 2009 – December 31, 2009

Insurer2008
Market
Share
Effective
New
Business
Date
Effective
Renewal
Business
Date
Approved
Rate
Change
Belair Insurance Company Inc.0.12%15-Oct-0909-Dec-095.10%
Certas Direct Insurance Company1.08%27-Nov-0926-Jan-102.01%
Certas Home & Auto Insurance Company0.00%27-Nov-0926-Jan-102.15%
CUMIS General Insurance Company0.26%01-Dec-0901-Dec-094.98%
Dominion of Canada General Insurance Company, The4.75%01-Nov-0901-Dec-097.79%
Farm Mutual Reinsurance Plan Inc.1, 21.83%01-Mar-1001-Mar-100.00%
Farmer’s Mutual Insurance Company (Lindsay)10.25%01-Jan-1001-Mar-100.00%
Farmer’s Mutual Insurance Company (Lindsay)0.25%01-Jan-1001-Jan-108.99%
Guarantee Company of North America, The10.74%01-Feb-1001-Mar-100.00%
Guarantee Company of North America, The0.74%15-Nov-0901-Jan-104.01%
Intact Insurance Company7.55%27-Dec-0927-Jan-103.75%
Nordic Insurance Company of Canada, The2.54%08-Oct-0902-Dec-099.40%
North Waterloo Farmers Mutual Insurance Company10.00%01-Mar-1001-Mar-100.00%
North Waterloo Farmers Mutual Insurance Company0.00%01-Dec-0901-Dec-095.54%
Pafco Insurance Company0.41%01-Jan-1001-Mar-103.20%
Personal Insurance Company, The3.10%13-Nov-0914-Jan-10-0.03%
Primmum Insurance Company1.46%15-Jan-1001-Feb-103.00%
RBC Insurance Company of Canada0.16%25-Oct-0909-Dec-095.84%
Security National Insurance Company5.57%15-Jan-1001-Feb-103.00%
State Farm Mutual Automobile Insurance Company112.46%21-Dec-0921-Dec-090.00%
TD General Insurance Company2.20%15-Jan-1001-Feb-1010.00%
TD Home and Auto Insurance Company1.54%15-Jan-1001-Feb-103.00%
Traders General Insurance Company3.14%01-Mar-1001-Mar-1015.00%
Unifund Assurance Company3.62%02-Nov-0901-Jan-109.29%
Waterloo Insurance Company0.64%01-Mar-1001-Mar-103.38%
Western Assurance Company0.80%01-Mar-1015-Apr-106.79%
York Fire & Casualty Insurance Company0.89%01-Jan-1001-Mar-109.86%
Zenith Insurance Company0.37%15-Nov-0901-Jan-1010.00%
Total Market Share Represented:55.48%
Weighted Average Rate Change:4.49%
  1. Implementation of CLEAR update.
  2. On behalf of the Ontario Mutuals.

Auto Insurance Rates for the First Quarter of 2010

The Government has passed regulations to enact automobile insurance reforms effective September 1, 2010.  The reforms will provide consumers with more choice and flexibility to purchase coverage that best meets their protection needs and budgets.

All auto insurance companies are required to file new rates with FSCO in April that take into account these reforms.  The impact of these reforms will be reflected in upcoming rate approvals.

Rate applications approved during the first quarter of 2010 (January 1, 2010 to March 31, 2010) averaged +5.37%, based on the entire market.

In the first quarter of 2010, for the 97.18% of the market that had rate changes approved, the average rate change was +5.53%, when weighted by market share.

The rate changes approved in the first quarter of 2010 become effective in the first quarter of 2010 or later for renewal business.

The rate changes approved in 2004, 2005, 2006, 2007, 2008 and 2009 were -10.60%, -2.43%,  -1.27%, +0.55%, +5.59% and +8.77%, respectively, for the entire market.

The approved rate change shown for each insurance company is the average for that particular company. The impact of a rate change on an individual consumer will vary depending on where the consumer lives, the type of car he or she is driving, and other risk characteristics.

FSCO will continue to ensure that insurance companies’ rate changes are reasonable and justified, and that the rates insurers charge are balanced with their ability to meet their future claims costs.

ONTARIO PRIVATE PASSENGER AUTOMOBILE INSURANCE RATE FILINGS APPROVED

January 1, 2010 – March 31, 2010

Insurer

2008
Market
Share

Effective
New
Business
Date

Effective
Renewal
Business
Date

Approved
Rate
Change

Allstate Insurance Company of Canada12.91%15-Feb-1015-Apr-100.00%
Allstate Insurance Company of Canada2.91%15-Jan-1015-Mar-10-1.01%
Arch Insurance Company10.00%01-Mar-1015-Apr-100.00%
Aviva Insurance Company of Canada10.39%01-Apr-1001-Apr-100.00%
Aviva Insurance Company of Canada0.39%22-Mar-1022-Mar-1014.00%
AXA Insurance (Canada)12.39%15-May-1015-May-100.00%
AXA Pacific Insurance Company10.15%15-May-1015-May-100.00%
Belair Insurance Company Inc.10.12%04-Mar-1019-Apr-100.00%
Belair Insurance Company Inc.0.12%11-Mar-1029-Apr-103.17%
CAA Insurance Company (Ontario)11.08%01-Apr-1015-May-100.00%
CAA Insurance Company (Ontario)1.08%01-Jun-1001-Jul-10-0.04%
Certas Direct Insurance Company21.08%09-May-1008-Jul-100.00%
Certas Home and Auto Insurance Company20.00%09-May-1008-Jul-100.00%
Chartis Insurance Company of Canada10.02%15-Feb-1015-Apr-100.00%
Chubb Insurance Company of Canada10.52%01-Feb-1001-Mar-100.00%
Co-operators General Insurance Company14.57%15-Mar-1015-Mar-100.00%
Co-operators General Insurance Company4.57%18-Apr-1018-Apr-102.49%
Coachman Insurance Company10.20%01-May-1001-May-100.00%
Coachman Insurance Company0.20%01-May-1001-Mar-106.10%
COSECO Insurance Company11.56%31-Mar-1031-Mar-100.00%
COSECO Insurance Company1.56%05-May-1005-May-1010.53%
CUMIS General Insurance Company10.26%01-Apr-1001-Apr-100.00%
Dominion of Canada General Insurance Company, The14.75%01-Feb-1001-Apr-100.00%
Dominion of Canada General Insurance Company, The24.75%15-Feb-1015-Apr-100.00%
Dominion of Canada General Insurance Company, The4.75%01-Jun-1001-Aug-100.18%
Echelon General Insurance Company10.86%01-Apr-1015-May-100.00%
Echelon General Insurance Company0.86%01-Apr-1015-May-104.16%
Economical Mutual Insurance Company16.21%01-Feb-1015-Apr-100.00%
Economical Mutual Insurance Company6.21%01-Apr-1015-Jun-103.90%
Elite Insurance Company0.16%22-Mar-1022-Mar-109.50%
Elite Insurance Company10.16%01-Apr-1001-Apr-100.00%
Federated Insurance Company of Canada20.02%01-Mar-1001-Mar-100.00%
Federated Insurance Company of Canada10.02%01-May-1001-May-100.00%
Federation Insurance Company of Canada10.00%15-Feb-1015-Apr-100.00%
Gore Mutual Insurance Company1.15%01-Feb-1001-Apr-106.00%
Gore Mutual Insurance Company11.15%15-Apr-1015-Apr-100.00%
Hartford Fire Insurance Company10.00%15-Mar-1015-Mar-100.00%
Intact Insurance Company17.55%01-May-1001-Jun-100.00%
Intact Insurance Company7.55%01-May-1001-Jun-100.60%
Jevco Insurance Company11.57%01-Mar-1001-Apr-100.00%
Lombard General Insurance Company of Canada10.11%15-Feb-1015-Mar-100.00%
Lombard General Insurance Company of Canada0.11%15-Feb-1015-Mar-1010.96%
Lombard Insurance Company1.03%15-Feb-1015-Mar-105.19%
Lombard Insurance Company11.03%15-Feb-1015-Mar-100.00%
Motors Insurance Corporation10.56%01-Feb-1028-Mar-100.00%
Nordic Insurance Company of Canada, The2.54%11-Mar-1029-Apr-107.36%
Nordic Insurance Company of Canada, The12.54%04-Mar-1019-Apr-100.00%
Novex Insurance Company10.50%01-May-1001-Jun-100.00%
Novex Insurance Company0.50%01-May-1001-Jun-102.10%
Optimum Insurance Company Inc.10.19%01-Feb-1010-Apr-100.00%
Optimum Insurance Company Inc.0.19%23-Feb-1010-Apr-104.73%
Pafco Insurance Company10.41%15-Feb-1015-Apr-100.00%
Pembridge Insurance Company10.71%15-Feb-1015-Apr-100.00%
Pembridge Insurance Company20.71%20-Mar-1020-May-100.00%
Personal Insurance Company, The23.10%09-May-1008-Jul-100.00%
Perth Insurance Company11.26%01-Feb-1015-Apr-100.00%
Perth Insurance Company1.26%01-Apr-1015-Jun-109.70%
Pilot Insurance Company14.89%01-Apr-1001-Apr-100.00%
Pilot Insurance Company4.89%22-Mar-1022-Mar-1018.50%
Portage La Praire Mutual Insurance Company20.19%01-May-1001-Jun-100.00%
Portage La Praire Mutual Insurance Company10.19%01-May-1001-Jun-100.00%
Primmum Insurance Company11.46%16-Feb-1016-Apr-100.00%
Primmum Insurance Company1.46%01-Sep-1001-Sep-1010.84%
RBC General Insurance Company2.80%08-Feb-1025-Mar-105.43%
RBC General Insurance Company12.80%08-Feb-1025-Mar-100.00%
RBC General Insurance Company2.80%20-May-1020-May-100.62%
RBC Insurance Company of Canada10.16%24-Jan-1010-Mar-100.00%
Royal & SunAlliance Insurance Company of Canada11.59%01-Apr-1022-May-100.00%
S & Y Insurance Company0.60%22-Mar-1022-Mar-108.60%
S & Y Insurance Company10.60%01-Apr-1001-Apr-100.00%
Scottish & York Insurance Co. Limited1.46%22-Mar-1022-Mar-1020.10%
Scottish & York Insurance Co. Limited11.46%01-Apr-1001-Apr-100.00%
Security National Insurance Company15.57%16-Feb-1016-Apr-100.00%
Security National Insurance Company5.57%01-Sep-1001-Sep-107.80%
Sovereign General Insurance Company, The1 0.00%01-May-1001-May-100.00%
Sovereign General Insurance Company, The0.00%01-May-1001-May-1011.16%
State Farm Mutual Automobile Insurance Company12.46%15-Mar-1026-Apr-107.24%
TD General Insurance Company12.20%16-Feb-1016-Apr-100.00%
TD General Insurance Company2.20%01-Sep-1001-Sep-1027.30%
TD Home and Auto Insurance Company11.54%16-Feb-1016-Apr-100.00%
TD Home and Auto Insurance Company1.54%01-Sep-1001-Sep-1013.30%
Traders General Insurance Company13.14%01-Apr-1001-Apr-100.00%
Trafalgar Insurance Company of Canada1.10%15-Jan-1001-Mar-109.42%
Trafalgar Insurance Company of Canada11.10%01-Mar-1001-Mar-100.00%
Unifund Assurance Company3.62%01-May-1001-May-102.27%
Waterloo Insurance Company0.64%01-Jun-1015-Aug-10-0.10%
Waterloo Insurance Company10.64%01-Jun-1015-Aug-100.00%
Wawanesa Mutual Insurance Company, The3.76%01-May-1001-May-108.98%
Wawanesa Mutual Insurance Company, The13.76%01-Apr-1001-Apr-100.00%
Western Assurance Company10.80%01-Apr-1022-May-100.00%
York Fire and Casualty Insurance Company10.89%01-Mar-1001-Apr-100.00%
Zenith Insurance Company10.37%15-Feb-1015-Mar-100.00%
Zurich Insurance Company10.01%01-Feb-1001-Apr-100.00%
Total Market Share Represented:97.18%
Weighted Average Rate Change:5.53%
  1. Implementation of CLEAR update.
  2. Rate changes with no overall impact.

Auto Insurance Rates for the Second Quarter of 2010

The Government has passed regulations to enact automobile insurance reforms effective September 1, 2010.  The reforms will provide consumers with more choice and flexibility to purchase coverage that best meets their protection needs and budgets.

All auto insurance companies were required to file new rates with FSCO in April that took into account these reforms. These filings have now been approved and the following table reflects the changes to auto rates approved in the second quarter of 2010 and effective September 1, 2010.

Rate applications approved during the second quarter of 2010 (April 1, 2010 to June 30, 2010) averaged -1.03%, based on the entire market.

In the second quarter of 2010, for the 100% of the market that had rate changes approved, the average rate change was -1.03%, when weighted by market share.

The rate changes approved in the second quarter of 2010 become effective in the third quarter of 2010.

The rate changes approved in 2004, 2005, 2006, 2007, 2008 and 2009 were -10.60%, -2.43%, -1.27%, +0.55%, +5.59% and +8.77%, respectively, for the entire market.

The approved rate change shown for each insurance company is the average for that particular company. The impact of a rate change on an individual consumer will vary depending on where the consumer lives, the type of car he or she is driving, and other risk characteristics.

FSCO will continue to ensure that insurance companies’ rate changes are reasonable and justified, and that the rates insurers charge are balanced with their ability to meet their future claims costs.

ONTARIO PRIVATE PASSENGER AUTOMOBILE INSURANCE RATE FILINGS APPROVED

April 1, 2010 to June 30, 2010

Insurer

2009 Market Share

Effective New Business Date

Effective Renewal Business Date

Approved Rate Change

Notes

Allstate Insurance Company of Canada2.87%01-Sep-1001-Sep-10-2.01%1
Arch Insurance Company0.00%01-Sep-1001-Sep-100.00%1
Aviva Insurance Company of Canada1.46%01-Sep-1001-Sep-10-2.34%1
AXA Insurance (Canada)2.65%01-Sep-1001-Sep-10-0.03%1
AXA Pacific Insurance Company0.26%01-Sep-1001-Sep-100.00%1
Belair Insurance Company Inc.0.11%01-Sep-1001-Sep-10-2.57%1
CAA Insurance Company (Ontario)1.05%01-Sep-1001-Sep-10-0.64%1
Certas Direct Insurance Company1.07%01-Sep-1001-Sep-100.00%1
Certas Home & Auto Insurance Company0.01%01-Sep-1001-Sep-10-0.02%1
Chartis Insurance Company of Canada0.03%01-Sep-1001-Sep-10-0.03%1
Chubb Insurance Company of Canada0.51%01-Sep-1001-Sep-10-0.09%1
Coachman Insurance Company0.24%01-Sep-1001-Sep-10-5.83%1
Co-operators General Insurance Company4.49%01-Sep-1001-Sep-10-0.04%1
COSECO Insurance Company1.47%01-Sep-1001-Sep-10-1.98%1
CUMIS General Insurance Company0.27%01-Sep-1001-Sep-100.00%1
Dominion of Canada General Insurance Company, The5.15%01-Sep-1001-Sep-100.00%1
Echelon General Insurance Company0.88%01-Sep-1001-Sep-10-7.24%1
Economical Mutual Insurance Company4.96%01-Sep-1001-Sep-10-0.42%1
Elite Insurance Company2.04%01-Sep-1001-Sep-10-3.14%1
Farm Mutual Reinsurance Plan Inc.1.80%01-Sep-1001-Sep-10-1.76%1,2
Farmers’ Mutual Insurance Company (Lindsay)0.28%01-Sep-1001-Sep-10-2.86%1
Federated Insurance Company of Canada0.02%01-Sep-1001-Sep-10-6.37%1
Federation Insurance Company of Canada0.02%01-Sep-1001-Sep-100.00%1
Gore Mutual Insurance Company1.32%01-Sep-1001-Sep-10-3.12%1
Guarantee Company of North America, The0.72%01-Sep-1001-Sep-10-2.79%1
Hartford Fire Insurance Company0.00%01-Sep-1001-Sep-10-0.14%1
Intact Insurance Company7.33%01-Sep-1001-Sep-100.00%1
Jevco Insurance Company1.34%01-Sep-1001-Sep-100.00%1
Lombard General Insurance Company of Canada0.07%01-Sep-1001-Sep-10-0.01%1
Lombard Insurance Company1.00%01-Sep-1001-Sep-10-0.05%1
Motors Insurance Corporation0.53%01-Sep-1001-Sep-10-6.49%1
Nordic Insurance Company of Canada, The2.89%01-Sep-1001-Sep-100.00%1
North Waterloo Farmers Mutual Insurance Company0.12%01-Sep-1001-Sep-10-3.35%1
Novex Insurance Company0.51%01-Sep-1001-Sep-100.00%1
Optimum Insurance Company Inc.0.23%01-Sep-1001-Sep-100.00%1
Pafco Insurance Company0.37%01-Sep-1001-Sep-10-2.25%1
Pembridge Insurance Company0.63%01-Sep-1001-Sep-10-3.85%1
Personal Insurance Company, The2.96%01-Sep-1001-Sep-100.00%1
Perth Insurance Company1.14%01-Sep-1001-Sep-100.00%1
Pilot Insurance Company1.21%01-Sep-1001-Sep-100.00%1
Portage La Prairie Mutual Insurance Company0.22%01-Sep-1001-Sep-10-0.01%1
Primmum Insurance Company1.55%01-Sep-1001-Sep-10-5.55%1
RBC General Insurance Company2.72%01-Sep-1001-Sep-100.00%1
RBC Insurance Company of Canada0.67%01-Sep-1001-Sep-100.00%1
Royal & SunAlliance Insurance Company of Canada1.47%01-Sep-1001-Sep-100.00%1
S & Y Insurance Company0.60%01-Sep-1001-Sep-10-0.04%1
Scottish & York Insurance Co. Limited1.14%01-Sep-1001-Sep-10-8.07%1
Security National Insurance Company5.68%01-Sep-1001-Sep-10-6.47%1
Sovereign General Insurance Company0.00%01-Sep-1001-Sep-10-2.31%1
State Farm Mutual Automobile Insurance Company13.01%01-Sep-1001-Sep-100.00%1
TD General Insurance Company2.48%01-Sep-1001-Sep-10-0.18%1
TD Home and Auto Insurance Company1.42%01-Sep-1001-Sep-10-0.71%1
Traders General Insurance Company2.94%01-Sep-1001-Sep-100.00%1
Trafalgar Insurance Company of Canada1.34%01-Sep-1001-Sep-100.00%1
Unifund Assurance Company3.86%01-Sep-1001-Sep-100.00%1
Waterloo Insurance Company0.70%01-Sep-1001-Sep-10-0.59%1
Wawanesa Mutual Insurance Company, The4.01%01-Sep-1001-Sep-100.00%1
Western Assurance Company0.89%01-Sep-1001-Sep-100.00%1
York Fire & Casualty Insurance Company0.88%01-Sep-1001-Sep-100.00%1
Zenith Insurance Company0.40%01-Sep-1001-Sep-10-0.03%1
Zurich Insurance Company0.01%01-Sep-1001-Sep-10-0.01%1
Total Market Share Represented:100%
Weighted Average Rate Change:
-1.03%

Notes:

  1. Auto Reform Filings
  2. On behalf of Ontario Mutuals

Auto Insurance Rates for the Third Quarter of 2010

The Government passed regulations to enact auto insurance reforms effective September 1, 2010. These reforms are designed to reduce excess assessment costs in the auto insurance system and ensure more accident benefit dollars go to treating people injured in auto accidents.

Ontario drivers now have more choice when it comes to their auto insurance coverage. Drivers can opt for a new standard level of auto insurance coverage, or they can choose to buy additional levels of coverage based on their own circumstances.

As part of the reforms, drivers will also benefit from the new consumer protection measures, including the implementation of a regulation that prohibits the use of a driver’s credit rating in connection with auto insurance.

Rate filings approved during the third quarter of 2010 (July 1, 2010 to September 30, 2010) averaged -0.09%, based on the entire market.

In the third quarter of 2010, for the 45.30% of the market that had rate changes approved, the average rate change was -0.21%, when weighted by market share.

The rate changes approved in the third quarter of 2010 become effective in the third quarter or later.

The approved rate change shown for each insurance company is the average for that company based on all the consumers it insures.  An individual consumer may experience a rate change that is either higher or lower than the average, depending on the vehicle insured, where he or she lives and other risk factors as well as choices made by the consumer on coverages purchased and deductible or liability limits.  Also, as most consumers purchase annual policies, the rate change from the last renewal will also reflect any changes approved for the insurer in the last year. For more information about auto insurance, please review FSCO’s brochure Understanding Auto Insurance.

Ontario has a very competitive auto insurance market.  Rates vary from company to company because each company bases its rates on its own claims costs and uses a different set of risk characteristics to determine the rate for a specific consumer.  FSCO reviews filings from companies to ensure that the rates proposed are justified based on claims costs and other operating costs.  As a result of FSCO’s review, an insurance company may be required to amend its proposed rates before the rates are approved.

FSCO’s Understanding Rates/An Interactive Tool demonstrates how rates for the same coverage can vary from company to company.  You can see how rates will vary depending upon whether you choose to purchase a policy with standard Accident Benefits coverage or with other optional coverages as well as your personal profile.

FSCO will continue to ensure that rate changes by insurance companies are reasonable and justified, and that rates charged are balanced with the ability of companies to meet future claims costs.

ONTARIO PRIVATE PASSENGER AUTOMOBILE
INSURANCE RATE FILINGS APPROVED
July 1, 2010 to September 30, 2010
Insurer2009 Market ShareEffective New Business DateEffective Renewal Business DateApproved Rate change
Allstate Insurance Company of Canada2.87%07-Sep-1007-Sep-100.08%
Aviva Insurance Company of Canada (1)4.62%15-Sep-1001-Nov-10-1.39%
AXA Insurance (Canada)2.65%15-Oct-1015-Oct-100.05%
CAA Insurance Company (Ontario)1.05%01-Sep-1001-Sep-102.74%
Echelon General Insurance Company0.88%01-Nov-1001-Dec-106.96%
Intact Insurance Company7.33%01-Oct-1001-Nov-10-1.79%
Jevco Insurance Company1.34%01-Oct-1001-Nov-109.97%
Nordic Insurance Company of Canada, The2.89%08-Oct-1023-Nov-10-0.80%
North Waterloo Farmers Mutual Insurance Company (2)0.12%01-Dec-1001-Dec-100.00%
Pilot Insurance Company (1, 2)1.21%n/a01-Sep-100.00%
Scottish & York Insurance Co. Limited (1)1.74%15-Sep-1001-Nov-10-1.17%
State Farm Mutual Automobile Insurance Company (2)13.01%23-Aug-1023-Aug-100.00%
Traders General Insurance Company2.94%01-Oct-1001-Nov-10-2.74%
Unifund Assurance Company3.86%15-Sep-1001-Dec-10-0.03%
  1. Transfer of existing Pilot, Elite and S&Y risks on renewal to Aviva and Scottish & York.
  2. Rate changes with no overall impact.

Total Market Share Represented: 45.30%

Weighted Average Rate Change:-0.21%

When an insurance company adjusts its rates for any given coverage, it means that the company has experienced a change in the claims costs for that coverage.  For example, an increase to rates for Accident Benefits coverage would indicate that an insurance company has experienced an increased number and/ or increased average cost of Accident Benefit claims. A company must provide its claims costs for each coverage in support of any change in rates.  The weighted average approved rate change shown is the average for each coverage based on the company filings that were approved during the quarter.

APPROVED RATE CHANGE BY COVERAGE
July 1, 2010 to September 30, 2010
Coverage Weighted Average Rate Change
Third Party Liability-Bodily Injury-0.29%
Third Party Liability-Property Damage-0.16%
Standard Accident Benefits0.27%
Uninsured Automobile-0.44%
Direct Compensation-Property Damage-0.87%
Specified Perils-0.02%
Comprehensive-0.65%
Collision-0.68%
All Perils-0.75%
OPCF 44R Family Protection-0.06%

This pie chart illustrates what coverages consumers buy with their premium dollars based on 2009 premiums.  It shows that most premium dollars go towards purchasing standard Accident Benefits:

 

Auto Insurance Rates for the First Quarter of 2011

The Government passed regulations to enact auto insurance reforms effective September 1, 2010. These reforms are designed to reduce excess assessment costs in the auto insurance system and ensure more accident benefit dollars go to treating people injured in auto accidents.

Ontario drivers now have more choice when it comes to their auto insurance coverage. Drivers can opt for a new standard level of auto insurance coverage, or they can choose to buy additional levels of coverage based on their own circumstances.

As part of the reforms, drivers will also benefit from the new consumer protection measures, including the implementation of a regulation that prohibits the use of a driver’s credit rating in connection with auto insurance.

Rate filings approved during the first quarter of 2011 (January 1, 2011 to March 31, 2011) averaged +1.78% based on the entire market.

In the first quarter of 2011, for the 53.64% of the market that had rate changes approved, the average rate change was +3.32%, when weighted by market share.

The rate changes approved in the first quarter of 2011 become effective in the first quarter or later.

The approved rate change shown for each insurance company is the average for that company based on all the consumers it insures. An individual consumer may experience a rate change that is either higher or lower than the average, depending on the vehicle insured, where he or she lives and other risk factors as well as choices made by the consumer on coverages purchased and deductible or liability limits. Also, as most consumers purchase annual policies, the rate change from the last renewal will also reflect any changes approved for the insurer in the last year. For more information about auto insurance, please review FSCO’s brochure Understanding Auto Insurance.

Ontario has a very competitive auto insurance market. Rates vary from company to company because each company bases its rates on its own claims costs and uses a different set of risk characteristics to determine the rate for a specific consumer. FSCO reviews filings from companies to ensure that the rates proposed are justified based on claims costs and other operating costs. As a result of FSCO’s review, an insurance company may be required to amend its proposed rates before the rates are approved.

FSCO’s Understanding Rates/An Interactive Tool demonstrates how rates for the same coverage can vary from company to company. You can see how rates will vary depending upon whether you choose to purchase a policy with standard Accident Benefits coverage or with other optional coverages as well as your personal profile.

FSCO will continue to ensure that rate changes by insurance companies are reasonable and justified, and that rates charged are balanced with the ability of companies to meet future claims costs.

ONTARIO PRIVATE PASSENGER AUTOMOBILE
INSURANCE RATE FILINGS APPROVED
January 1, 2011 to March 31, 2011

 

Insurer

2009 Market Share %

Effective New Business Date

Effective Renewal Business Date

Approved Rate change %

Allstate Insurance Company of Canada2.8715-Feb-1115-Apr-110.00
Belair Insurance Company Inc.  (1)0.1105-Sep-1005-Sep-100.48
Belair Insurance Company Inc.0.1110-Feb-1106-Apr-110.00
Coachman Insurance Company0.2401-Apr-1101-Apr-1110.00
Co-operators General Insurance Company4.4930-Apr-1130-Apr-115.51
Dominion of Canada General Insurance Company5.1501-Mar-1101-Apr-111.36
Economical Mutual Insurance Company4.9615-May-1115-Jul-11-3.47
Federation Insurance Company of Canada0.0215-Apr-1115-Jun-114.99
Guarantee Company of North America0.7201-Mar-1101-May-112.54
Intact Insurance Company7.3322-Apr-1115-May-11-0.24
Jevco Insurance Company1.3406-Mar-1106-Apr-118.91
Nordic Insurance Company of Canada  (1)2.8905-Sep-1005-Sep-102.65
Optimum Insurance Company Inc.0.2321-Feb-1110-Apr-113.00
RBC General Insurance Company2.7208-Feb-1125-Mar-114.75
Royal & SunAlliance Insurance Company of Canada1.4729-Apr-1129-Apr-110.00
State Farm Mutual Automobile Insurance Company13.0104-Apr-1116-May-118.23
Tokio Marine and Nichido Fire Insurance Company Limited0.0001-Mar-1101-Apr-110.00
Trafalgar Insurance Company of Canada  (1)1.3415-Nov-1015-Nov-101.35
Trafalgar Insurance Company of Canada1.3423-Feb-1124-Apr-110.00
Unifund Assurance Company3.8601-Apr-1101-Jun-114.88
Western Assurance Company0.8901-Mar-1129-Apr-11-0.29

Auto Insurance Rates for the Second Quarter of 2011

The Government passed regulations to enact auto insurance reforms effective September 1, 2010. These reforms are designed to reduce excess assessment costs in the auto insurance system and ensure more accident benefit dollars go to treating people injured in auto accidents.
Ontario drivers now have more choice when it comes to their auto insurance coverage. Drivers can opt for a new standard level of auto insurance coverage, or they can choose to buy additional levels of coverage based on their own circumstances.
As part of the reforms, drivers will also benefit from the new consumer protection measures, including the implementation of a regulation that prohibits the use of a driver’s credit rating in connection with auto insurance.
Rate filings approved during the second quarter of 2011 (April 1, 2011 to June 30, 2011) averaged 1.00%, based on the entire market.
In the second quarter of 2011, for the 29.59% of the market that had rate changes approved, the average rate change was 3.36%, when weighted by market share.
The rate changes approved in the second quarter of 2011 become effective in the second quarter or later.
The approved rate change shown for each insurance company is the average for that company based on all the consumers it insures.  An individual consumer may experience a rate change that is either higher or lower than the average, depending on the vehicle insured, where he or she lives and other risk factors as well as choices made by the consumer on coverages purchased and deductible or liability limits.  Also, as most consumers purchase annual policies, the rate change from the last renewal will also reflect any changes approved for the insurer in the last year. For more information about auto insurance, please review FSCO’s brochure Understanding Auto Insurance.
Ontario has a very competitive auto insurance market.  Rates vary from company to company because each company bases its rates on its own claims costs and uses a different set of risk characteristics to determine the rate for a specific consumer.  FSCO reviews filings from companies to ensure that the rates proposed are justified based on claims costs and other operating costs.  As a result of FSCO’s review, an insurance company may be required to amend its proposed rates before the rates are approved.
FSCO’s Understanding Rates/An Interactive Tool demonstrates how rates for the same coverage can vary from company to company.  You can see how rates will vary depending upon whether you choose to purchase a policy with standard Accident Benefits coverage or with other optional coverages as well as your personal profile.
FSCO will continue to ensure that rate changes by insurance companies are reasonable and justified, and that rates charged are balanced with the ability of companies to meet future claims costs.
ONTARIO PRIVATE PASSENGER AUTOMOBILE INSURANCE RATE FILINGS APPROVED
April 1, 2011 to June 30, 2011
Insurer
2010 Market Share
Effective New Business Date
Effective Renewal Business Date
Approved Rate change
ACE INA Insurance (1)
   0.00%
15-May-11
15-May-11
0.00%
Allstate Insurance Company of Canada
   3.24%
15-May-11
01-Jul-11
5.86%
Aviva Insurance Company of Canada
 4.65%
01-Jul-11
01-Jul-11
0.03%
Belair Insurance Company Inc.
 0.08%
18-Apr-11
30-May-11
0.00%
CAA Insurance Company (Ontario)
 1.10%
15-Sep-11
15-Oct-11
3.39%
Certas Direct Insurance Company
 1.67%
15-Jul-11
13-Sep-11
3.02%
Certas Direct Insurance Company
 1.67%
01-Apr-11
31-May-11
5.00%
Certas Home and Auto Insurance Company
 0.02%
15-Jul-11
30-Sep-11
3.10%
Certas Home and Auto Insurance Company
 0.02%
08-Apr-11
07-Jun-11
12.35%
Dominion of Canada General Insurance Company
 5.33%
06-Jun-11
01-Aug-11
-0.02%
Echelon General Insurance Company
 0.88%
15-May-11
01-Jul-11
3.25%
Farm Mutual Reinsurance Plan Inc. (2)
 1.78%
01-Sep-11
01-Sep-11
5.01%
Farmers’ Mutual Insurance Company (Lindsay)
 0.31%
01-Sep-11
01-Sep-11
0.00%
Lombard General Insurance Company of Canada
 0.05%
04-Jun-11
04-Jun-11
13.63%
Lombard Insurance Company
 0.94%
04-Jun-11
04-Jun-11
6.98%
Nordic Insurance Company of Canada
 3.03%
18-Apr-11
30-May-11
9.70%
North Waterloo Farmers Mutual Insurance Company
 0.27%
01-May-11
01-Jun-11
3.70%
Pafco Insurance Company
 0.57%
15-May-11
01-Jul-11
0.12%
Pembridge Insurance Company
  0.75%
15-May-11
01-Jul-11
5.79%
Perth Insurance Company
 0.85%
15-May-11
15-Jul-11
7.00%
RBC Insurance Company of Canada
 0.88%
01-Jun-11
16-Jul-11
3.34%
Scottish & York Insurance Co. Limited
 0.68%
01-Jul-11
01-Jul-11
0.12%
Tokio Marine and Nichido Fire Insurance Company Limited
 0.01%
04-Jun-11
04-Jun-11
14.76%
Traders General Insurance Company
 2.5%
01-Jul-11
01-Jul-11
0.05%

Notes:

(1)  New company writing Private Passenger Automobile Insurance
(2)  On behalf of Ontario Mutuals
Total Market Share Represented: 29.59%
Average Rate Change for Entire Market: +1.00%
Weighted Average Rate Change: +3.36%
Total Number of Filings Approved: 24

When an insurance company adjusts its rates for any given coverage, it means that the company has experienced a change in the claims costs for that coverage.  For example, an increase to rates for Accident Benefits coverage would indicate that an insurance company has experienced an increased number and/ or increased average cost of Accident Benefit claims. A company must provide its claims costs for each coverage in support of any change in rates.  The weighted average approved rate change shown is the average for each coverage based on the company filings that were approved during the quarter.

APPROVED RATE CHANGE BY COVERAGE April 1, 2011 to June 30, 2011
Coverage
Weighted Average Rate Change
Third Party Liability-Bodily Injury
                  2.48%
Third Party Liability-Property Damage
                  6.15%
Standard Accident Benefits
                  8.37%
Uninsured Automobile
                 -0.90%
Direct Compensation-Property Damage
                 -0.76%
Specified Perils
                  0.01%
Comprehensive
                 -2.10%
Collision
                 -1.71%
All Perils
                 -0.86%
OPCF 44R Family Protection
                  0.45%
This pie chart illustrates what coverages consumers buy with their premium dollars based on 2010 written premiums.  It shows that most premium dollars go towards purchasing standard Accident
Benefits:
Source: GISA Exhibit AU05-N
The following graph shows that Accident Benefits claims costs per vehicle have increased by 105% over the last four years. The Accident Benefits claims costs per vehicle increased by 6% from 2009 to 2010.
The Ontario Government introduced auto insurance reforms that became effective September 1, 2010 and FSCO continues to monitor the impact of the 2010 reforms.
Source: GISA Exhibit AU05-N

Auto Insurance Rates for the Third Quarter of 2011 [Bill 5]

The Government passed regulations to enact auto insurance reforms effective September 1, 2010. These reforms are designed to reduce excess assessment costs in the auto insurance system and ensure more accident benefit dollars go to treating people injured in auto accidents.
Ontario drivers now have more choice when it comes to their auto insurance coverage. Drivers can opt for a new standard level of auto insurance coverage, or they can choose to buy additional levels of coverage based on their own circumstances.
As part of the reforms, drivers will also benefit from the new consumer protection measures, including the implementation of a regulation that prohibits the use of a driver’s credit rating in connection with auto insurance.
Rate filings approved during the third quarter of 2011 (July 1 to September 30) averaged 1.21%, based on the entire market.
In the third quarter of 2011, for the 39.66% of the market that had rate changes approved, the average rate change was +3.05%, when weighted by market share.
The rate changes approved in the third quarter of 2011 become effective in the third quarter or later.
The approved rate change shown for each insurance company is the average for that company based on all the consumers it insures.  An individual consumer may experience a rate change that is either higher or lower than the average, depending on the vehicle insured, where he or she lives and other risk factors as well as choices made by the consumer on coverages purchased and deductible or liability limits.  Also, as most consumers purchase annual policies, the rate change from the last renewal will also reflect any changes approved for the insurer in the last year. For more information about auto insurance, please review FSCO’s brochure Understanding Auto Insurance.
Ontario has a very competitive auto insurance market.  Rates vary from company to company because each company bases its rates on its own claims costs and uses a different set of risk characteristics to determine the rate for a specific consumer.  FSCO reviews filings from companies to ensure that the rates proposed are justified based on claims costs and other operating costs.  As a result of FSCO’s review, an insurance company may be required to amend its proposed rates before the rates are approved.
FSCO’s Understanding Rates/An Interactive Tool demonstrates how rates for the same coverage can vary from company to company.  You can see how rates will vary depending upon whether you choose to purchase a policy with standard Accident Benefits coverage or with other optional coverages as well as your personal profile.

 

FSCO will continue to ensure that rate changes by insurance companies are reasonable and justified, and that rates charged are balanced with the ability of companies to meet future claims costs.

ONTARIO PRIVATE PASSENGER AUTOMOBILE INSURANCE RATE FILINGS APPROVED
July 1, 2011 to September 30, 2011

 

Insurer
2010 Market Share %
Effective New Business Date
Effective Renewal Business Date
Approved Rate change %
Co-operators General Insurance Company
4.35
29-Jul-11
29-Jul-11
-0.15
Intact Insurance Company (4)
7.16
08-Aug-11
08-Aug-11
0.84
Intact Insurance Company
7.16
01-Sep-11
01-Oct-11
2.26
Intact Insurance Company (1)
10.17
15-Oct-11
01-Dec-11
-0.43
Motors Insurance Corporation
0.57
08-Aug-11
02-Oct-11
10.34
Novex Insurance Company (4)
0.63
25-Jul-11
25-Jul-11
0.26
Novex Insurance Company (1)
0.76
15-Oct-11
01-Dec-11
-1.77
Optimum Insurance Company Inc. (2)
0.26
01-Aug-11
15-Sep-11
0.00
Pafco Insurance Company
0.57
15-Jul-11
01-Sep-11
4.76
Personal Insurance Company
2.91
09-Sep-11
08-Nov-11
2.00
Portage La Prairie Mutual Insurance Company
0.25
01-Sep-11
01-Nov-11
2.04
State Farm Mutual Automobile Insurance Company
12.43
21-Nov-11
21-Nov-11
3.16
Waterloo Insurance Company
0.71
01-Nov-11
01-Jan-12
0.43
Wawanesa Mutual Insurance Company
4.27
01-Oct-11
01-Oct-11
9.89
Western Assurance Company
1.06
01-Sep-11
29-Oct-11
3.43
XL Insurance Company Limited (3)
 0.00
01-Oct-11
N/A
 N/A
York Fire & Casualty Insurance Company
0.94
01-Sep-11
01-Oct-11
3.96
Zenith Insurance Company
0.41
01-Sep-11
01-Sep-11
1.97
  1. Includes the acquisition of AXA Insurance (Canada) and AXA Pacific Insurance Company.
  2. Rate Change with no overall impact.
  3. XL is a new entrant to the Ontario automobile insurance market.
  4. Annual rate cap filing impact – This is the estimated residual impact of a previously approved rate filing that introduced rate capping procedures.  The purpose of rate capping is to minimize the rate change for a particular risk over a period of time.

Total Market Share Represented: 39.66%

 

Weighted Average Rate Change:
3.05%

 

When an insurance company adjusts its rates for any given coverage, it means that the company has experienced a change in the claims costs for that coverage.  For example, an increase to rates for Accident Benefits coverage would indicate that an insurance company has experienced an increased number and/ or increased average cost of Accident Benefit claims. A company must provide its claims costs for each coverage in support of any change in rates.  The weighted average approved rate change shown is the average for each coverage based on the company filings that were approved during the quarter.
APPROVED RATE CHANGE BY COVERAGE
July 1, 2011 to September 30, 2011
Coverage
Weighted Average Rate Change %
Third Party Liability-Bodily Injury
4.58
Third Party Liability-Property Damage
3.96
Standard Accident Benefits
4.60
Uninsured Automobile
4.03
Direct Compensation-Property Damage
-0.84
Specified Perils
-29.60
Comprehensive
-5.80
Collision
-2.61
All Perils
-3.46
OPCF 44R Family Protection
-6.62

 

How cyclists in accidents are treated by Insurance Companies.

Understanding Automobile Insurance (see the Financial Services Commission of Ontario’s information guide)

At Fault Determination Rules (Insurance Act – Ont. Regulation 668)
Auto Accident Claims Process (see Financial Services Commission of Ontario website)

To Submit a Complaint against your Insurance Company: If you have a complaint against your insurance company or if you have an issue with your automobile insurance policy with your insurance company, contact The Ontario Financial Services Commission or call (outside of Toronto @ 1-800-668-0128) or in Toronto @ 416-250-6750.

Auto Insurance Claims Forms (OCF Forms): Down Load Forms

Ten (10) Tips to Save on Automobile Insurance (this is an old list found in the Toronto Star – but highly relevant in these tough economic times).

Update: June 11/09 – Insurance Companies exercise genetic discrimination.

Update: July 19/09 -Insurance Rates Skyrocket in Ontario; see post.

Update: October 5, 2009 – Ontario Liberals Support Auto Insurance Profits; see post.

Update: November 5, 2009 – Liberals Take Care of Ontario’s Auto Insurance Companies; see post.

Update: November 13, 2009 – Home Insurance Skyrockets in Ontario; see post

Update: January 19, 2010 – In addition to earlier insurance increases approved in 2009, the Financial Services Commission of Ontario (FSCO) said increases will average 8.77 %, up from 5.59 % for increases approved in 2008.

Update: August 22, 2010 – Auto Insurance Rules Change September 1, 2010 (Ontario)

Update: September 1, 2010 – What Insurance Companies Can’t Use to Determine Rates:
Your insurance company cannot use the following rating criteria to determine how much you should pay for automobile insurance:

  • credit history;
  • bankruptcy;
  • employment status;
  • whether you own a credit card;
  • how long you have lived in your current home;
  • accidents where you are less than 25 per cent at-fault where the accident occurred on or after September 1, 2010;
  • not-at-fault accidents;
  • whether your vehicle is owned or leased; and
  • whether there was a period of time where you had no automobile insurance coverage.

Update: September 1, 2010 – Liberals reduce insurance benefits for injured motorists and instead, pander to profit driven Auto Insurance Companies

Update: September 1, 2010 – Ontario Auto Insurance Reforms Hurt Consumers: Critics

Update: September 1, 2010 – Ontario Premier Dalton McGuinty defends decision to save Auto Insurance Companies money and increase their profit margin at the expense of nine (9) million driver’s in Ontario.

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