Some Ontario drivers are expected to pay more for their auto insurance premiums in the coming months as the governing body for the insurance industry approved a rate hike.
While the Financial Services Regulatory Authority of Ontario (FSRAO) hasn’t approved an industry-wide rate hike, it has recently approved Intact (3.44 percent), Verasur (4.96 percent), Belair (3.6 percent) and Aviva (2 -3.38 percent). ).
Back in June, Puffco and Allstate were up nearly five percent, while Zenith Insurance, which is part of the Northbridge insurer group, saw a whopping 10.37 percent.
“Given the rate of inflation and supply chain issues, the cost of claims is pushing up with Canadians to return to the streets, as these rate increases are not unexpected,” said Tanisha Kishan, insurance expert at Rates.co.
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“Many drivers can expect to see their rates increase upon their next renewal.”
Most insurance rates take a few months to come into effect but people can check the FSRAO website to see if their rates will go up and when the hike will be effective.
Auto insurers are required to obtain the FSRAO’s seal of approval before raising their rates.
On its website, the regulatory agency says the increase should be enough to cover claims obligations and expenses while still allowing for reasonable profits.
It also notes that an increase or decrease in premium can be due to the customer moving to a new area, buying a new or used vehicle or getting a speeding ticket.