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Auto Insurance Rates Continue to Fall

Archived Bulletin

Auto Insurance Rates Continue to Fall

Province Fighting Fraud and Reducing Rates

Ministry of Finance

Ontario's auto insurance rates have dropped a further 3.98 per cent -- for a total of 4.66 per cent on average since August 2013. That progress is making auto insurance more affordable for Ontario drivers, and keeps the province on track for achieving the 15 per cent reduction by August 2015.

The decrease comes as Ontario continues to implement its Auto Insurance Cost and Rate Reduction Strategy.

Introduced as part of the 2013 Ontario Budget, the strategy is targeting an average 15 per cent auto insurance rate reduction by August 2015 -- with a target of an average eight per cent reduction by August 2014.

As part of the strategy, Ontario has recently introduced new initiatives to help reduce costs and uncertainty in the auto insurance system, including:

  • The province will propose legislative amendments in the spring session based on recommendations of the Dispute Resolution System Review
  • Consulting on the development of a province-wide system to oversee the towing industry and reviewing vehicle storage and collision repair practices
  • Enabling health service provider licensing so that only licensed providers can get paid directly by insurers.

Making auto insurance more affordable is part of the Ontario government's plan to invest in people, build modern infrastructure and support a dynamic and innovative business climate.

Quick Facts

  • Once an insurer’s proposed rate change is approved by the regulator, drivers will see these new rates when their policies are renewed. Most policies are renewed annually.
  • Rate filings approved during the fourth quarter of 2013 declined on average by 3.98 per cent and during the third quarter of 2013 by 0.68 per cent, which together account for the 4.66 per cent reduction on average since August 2013.
  • To date, the government has taken action to address 18 of the 38 recommendations made by Ontario's Auto Insurance Anti-Fraud Task Force aimed at preventing fraud and helping protect consumers.
  • A final report on the review of the Automobile Insurance Dispute Resolution System will be delivered by the end of February; this follows an interim report that was submitted to the government in October 2013. The province will propose legislative amendments in the spring session based on recommendations of the review.
  • Many insurers offer discounts for safe driving, such as: using winter tires, completing a recognized driver training course, being an experienced or mature driver, or being a good driver with no at-fault claims or convictions. Drivers should check with their insurance company, agent, or broker for possible discounts.
  • Drivers with questions about auto insurance in Ontario, including how rates are set, are encouraged to visit the Financial Services Commission of Ontario’s (FSCO’s) website or call 1-800-668-0128 for more information.
  • FSCO also has a dedicated hotline that consumers can use to report suspected cases of auto insurance fraud. Simple and fast, the hotline is accessible on FSCO’s website at www.fsco.gov.on.ca/TipNow, as well as by telephone at 1-855-5TIP-NOW.

Additional Resources


“Our government is working hard to ensure a fair and affordable auto insurance system for Ontario’s nine million drivers. The average decline in rate approvals since August is proof that our Cost and Rate Reduction Strategy is working. We are on track to meet our goal of an average eight per cent reduction by August 2014, and by continuing to fight fraud and reduce uncertainty in the system, we’re confident we’ll get there.”

Charles Sousa

Minister of Finance

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