Why Your Car Insurance Increased Despite a Clean Record

A Deep Dive into Ontario’s Latest Rate Approvals

Imagine getting your renewal and seeing your car insurance increased, even though you haven’t had any accidents or tickets. You’re not alone.

Our research team analyzed the latest government-approved insurance rates in Ontario, and what we found will help you understand why this is happening – and more importantly, what you can do about it.

The Numbers Don’t Lie: 78% of Major Insurers Increased Rates in 2024

Here’s what our analysis found:

• Out of 45 insurance companies in Ontario, 35 got approval to increase their rates. That’s almost 8 out of every 10 insurance companies!
• Only 6 companies decreased their rates, with the biggest drop being just 0.33% (that’s about $3.30 savings on a $1,000 policy).
• The increases aren’t small – some companies got approved for raises as high as 34.87%.

Think of it this way: If insurance companies were ice cream shops, 78 out of 100 shops would have raised their prices this year, even for their best customers who never spill their ice cream!

Your Clean Record vs. Industry-Wide Rate Hikes

Understanding Government Approvals

Here’s what’s really happening with your insurance rates:

• Insurance companies must get government approval before changing rates. These changes affect EVERYONE, even good drivers.
• Think of it like a movie theater raising ticket prices. Even if you’re their best customer who never spills popcorn, you still pa the new price.
• The good news? Some companies got smaller increases than others. For example:
  • Intact Insurance (one of the biggest with 10.13% market share): Only 1.47% increase
  • Farm Mutual: Decreased rates by 0.33%
  • Wawanesa: Actually decreased rates by 0.03%

• The not-so-good news? Some increases are big:
  • Hartford: 34.87% increase
  • Portage: 25.79% increase
  • SGI: 12.28% increase

Pro Tip: Your current insurance company might have a bigger increase than others. That’s why shopping around is super important right now!

Rate Changes Across Ontario Insurers from -0.33% to 34.87%

• Some Good News First:
  • A few companies actually LOWERED their rates (Farm Mutual: -0.33%, Wawanesa: -0.03%)
  • Think of it like finding a gas station that dropped prices while others raised them!
• Middle of the Road:
  • Most companies raised rates between 2% to 7%
  • On a $1,500 policy, that’s about $30 to $105 more per year
• The Big Jumps:
  • Some companies went really high (Hartford: 34.87%, Portage: 25.79%)
  • That’s like paying $523 more on a $1,500 policy!

Here’s the simple breakdown of what we found:

Smart Shopper Tip: Make a list of companies with low or no increases. These should be your first stops when shopping for new insurance!

Market Share Matters: Top Insurance Players and Their Impact

Here’s why the big companies matter to your wallet:

• The Big Three Control the Game:
  • Intact Insurance: 10.13% of market (that’s about 1 in 10 drivers!)
  • TD Insurance: 7.19% of market
  • Co-operators: 7.19% of market
• Follow the Leaders:
  • When big companies raise rates, smaller ones often follow
  • Think of it like when the biggest gas station in town changes prices – others usually match
• Some Good News in the Numbers:
  • Intact (the biggest player) only raised rates by 1.47%
  • This is much lower than the market average of 5%
  • This could help keep other companies’ increases in check

Money-Saving Tip: Look at both the rate change AND the company size. Bigger companies often have more stable rates and better coverage options!

The Smart Shopping Strategy: Finding Insurers with Lower Rate Changes

Here’s your game plan to save money:

• Start With The Winners:
  • First, look at companies that LOWERED their rates
  • Farm Mutual, Wawanesa, and Allstate all decreased rates
  • That’s instant savings without doing anything else!
• Look at the Big & Stable:
  • Intact (biggest insurer) only raised rates 1.47%
  • TD Insurance (also huge) stayed under 2%
  • Bigger often means more stable rates long-term
• Do the Math:
  • On a $2,000 policy, a 5% increase means $100 more per year
  • Switching to a no-increase company could save you that $100
  • That’s like getting a free tank of gas!

Pro Tip: Make a shortlist of these lower-rate companies before you start shopping. It’ll save you time and money!

Time is Money: Why Traditional Quote Shopping Isn’t Working Anymore

Here’s why calling around for quotes is outdated:

• The Hidden Time Trap:
  • You need to call 5-7 different brokers to get good coverage
  • Each call takes 30-45 minutes (that’s 4-6 hours total!)
  • Most brokers are only open when you’re at work
• The Double-Quote Problem:
  • Many brokers represent the same insurance companies
  • You might get different prices for the same company from different brokers
  • No way to know if you’re really getting the best deal
• The Follow-Up Nightmare:
  • Brokers call back at random times
  • You have to explain your situation over and over
  • Hard to compare quotes when they come days apart

Smart Solution: Use digital platforms where brokers compete for your business. Enter your info once and let them do the work!

Take Control: Using Beat My Insurance to Test Your Broker’s Claims

Here’s how to get better rates with less hassle:

• The 15-Minute Solution:
  • List your policy details once on Beat My Insurance
  • Let multiple brokers see your information at once
  • Watch competitive quotes roll in automatically
• Test Your Current Broker:
  • If your broker claims they shop around, put it to the test
  • Let other brokers try to beat their rate
  • No pressure – you’re just comparing options!
• Smart Shopping Tips:
  • List your policy 60 days before renewal
  • Focus on brokers offering companies with small rate increases
  • Compare not just prices, but coverage too

Money-Saving Secret: The best time to list your policy is around 60 days before renewal. This gives you time to compare offers and switch if needed!

Conclusion: Take Control of Your Insurance Rates

Rising insurance rates in Ontario feel like a storm you can’t avoid, but remember this: you can take control. All you need to do is understand how rate approvals work and staying informed about which companies offer the best deals, you’re already one step ahead.

The key is shopping smart. Use tools like Beat My Insurance to compare rates effortlessly, challenge your current broker, and find the right balance of cost and coverage.

Even small savings add up over time, and switching to a company with stable rates can make a big difference to your wallet.

Don’t let rate hikes catch you off guard—take control of the situation, shop early, and do your research before making any choices to protect your budget without sacrificing coverage.

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