Canadian Capitalist » Insurance

Some Good News on Auto Insurance Premiums for 2012

Canadian Capitalist — Wed, 29 Feb 2012 03:28:40 +0000

Auto insurance premiums have skyrocketed in Ontario in the past few years. According to the Financial Services Commission of Ontario (FSCO), auto insurance premiums in the province increased by an average of 5.6 percent in 2008, 8.8 percent in 2009 and 6.2 percent in 2010. Since the reported rate changes are averages, your rate change may be higher or lower than average. As I reported here and here, the auto premiums for our household went up 22 percent in 2010 followed by another increase of 7.6 percent in 2011. Note that since most drivers renew their auto insurance annually, it may take up to a year for the rate changes approved by FSCO to take effect.

Our auto insurance renewal notice for 2012 arrived in the mail recently. The good news is that our auto insurance premium for the exact same coverage and driving record as last year is lower by 8 percent. I count myself lucky because Nordic Insurance Company, which is the underwriter of our policy increased rates by an average of 7 percent in 2011.

According to FSCO, auto insurance premiums went up by an average of 5 percent in 2011, a lower increase than previous years. It appears that new regulations capping accident benefits implemented by the Ontario Government in September 2010 are taking effect. The bad news is that you may still be hit with a hefty increase. Some insurance companies have received approvals for rate hikes of as much as 13 percent. If you are among the unlucky ones, be sure to shop around, review your insurance coverage, consider increasing the deductible and make sure you are getting all the discounts you are eligible for.

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Home Insurance Premiums Increasing Sharply

Canadian Capitalist — Wed, 09 Mar 2011 03:47:22 +0000

Our auto and home insurance renewal documents arrived in the mail the other day. Last year, the cost to insure our two automobiles went up by 22 per cent and the cost to insure our home went up by 14 per cent. And when I replaced our rusty old 1992 Accord with a shiny new (relatively speaking) 2004 Accord, our auto premiums went up another 31 per cent (a part of this increase was due to the addition of comprehensive coverage). So, when our auto and home insurance renewal documents arrived in the mail the other day, I opened the envelope with some trepidation. I was hoping that 2011 wouldn’t see a repeat performance. Unfortunately, I wasn’t so lucky.

The news isn’t so bad on the auto insurance front. The changes to new and renewing auto insurance policies implemented in Ontario beginning September 1, 2010 meant that our auto premiums went up by just 7.6 per cent. The smaller increase is a direct result of a decrease in benefits for car owners who are injured in an auto accident. For example, medical and rehabilitation benefits for non-catastrophic injuries have been reduced from $100,000 to $50,000. The good news is that I was quickly able to eliminate the premium increase by boosting the deductible on direct compensation.

Home insurance turned out to be a different story. The premiums went up by 28 per cent for exactly the same coverage and same situation (no claims in the past year). I was able to get a 6 per cent discount for running what Belair Direct calls a home diagnostic (once again, showing that there is real money in some of the bill insets, so at least take a glance before chucking them away), which still means a premium increase of 20 per cent. Insurance companies are blaming increased payouts for wind and water damage due to climate change for the increase in home insurance premiums.

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Auto & Home Insurance Premiums going up in Ontario

Canadian Capitalist — Mon, 08 Mar 2010 03:32:11 +0000

Our auto and home insurance renewal documents arrived in the mail the other day. The bad news is that insurance premiums are going up sharply in Ontario. Our auto and home insurance premiums went up by 22 and 14 percent respectively even though we did not have any claims in the past year. The hikes were not really surprising because Nordic Insurance Company, our auto insurance provider, obtained approval from the Financial Services Commission of Ontario (FSCO) for two rate increases that averaged 6.71% and 9.40% in the past year alone.

James Daw of The Star reported that the main reason for premium increases is the rapid rise in the cost of accident benefit claims. While the Ontario Government has announced changes that will allow consumers the choice to lower the medical benefits, the insurance companies are saying that they are awaiting greater clarity on the details of the reforms.

It’s possible that there is little you can do about the rise in premiums but it is worth trying to find ways to soften the blow. First, you can always shop around. Last year, I found that switching from Co-Operators to belairdirect reduced our auto premiums by a staggering 35 percent. If you find that other insurers are quoting similar numbers, it may be worth calling your current provider to try and find some savings. Maybe your driving patterns have changed or the insurance provider offers a discount that you’ve been missing out all these years. It may not amount to much but at least you’ll know you tried your best.

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