Well it's official. Bill 15, the Fighting Fraud and Reducing Automobile Insurance Rates Act was passed in the Ontario legislature and it is expected to help lower car insurance premiums. It's all part of the provincial government's Auto Insurance Cost and Rate Reduction Strategy, originally announced in August 2013 that is targeting an average 15 per cent auto insurance rate reduction by August 2015. Since the strategy was announced, the government says auto insurance rates have dropped an average of more than six per cent. Have you seen your rates decrease?
- Background Read: What Goes Up, Must Come Down? Ontario Auto Insurance Changes
- Background Read: Ontario Car Insurance Rates To Drop 15%
The keyword to it all: AVERAGE
An average 15 per cent reduction in Ontario auto insurance rates by August 2015 sounds great, but the keyword to note is average. The fact is, some people may not even see a decrease; drivers with a good driving record will see larger rewards and those with worse, will not.
When will you see the difference in rates?
Anytime there's a change in car insurance rates, drivers don't see the full effect until it's time to renew. When rates are rising, this works in a driver's favour; when rates are dropping the opposite is true. As a result, your rates will not automatically decrease mid-policy if your insurer lowers their premiums—it's upon renewal when you'll reap the benefits.
Do you have to wait until your policy is up for renewal?
No. You're free to compare auto insurance quotes at any time, and even switch car insurance providers. However, if you opt to switch companies mid-policy you'll likely pay a cancellation fee. These fees vary by company, the price of your policy and how far along you are into your current contract.
But, given that car insurance rates have dropped and are expected to continue doing so, the savings may very well offset the cost of a mid-policy cancellation; it's worth checking out.
The point is you don't have to wait. Compare car insurance quotes to see if you could save money now.
Is your policy renewing, just in time?
If your policy is up for renewal in the next few months, look it over and then compare your new rate to the rates available online through KANETIX.ca.
It's easy to review and accept the renewal notice from your current auto insurer, especially if your premium decreased, but at times like these—when rates are decreasing—there is a tremendous opportunity to save significantly more than expected, because:
- The insurer who offered you the best rate last time, may not offer you the best car insurance rate now. This is amplified when car insurance rates are dropping because some insurers will drop their rates faster than others.
Learn more about the Ontario auto insurance rate changes. Read:
- 15% Is A Good Starting Point, But...Can You Save More On Your Ontario Auto Insurance?
- Ontario Liberals Urge Ontarians to Compare Auto Insurance to Get The Best Rate
- Cheaper Ontario Auto Insurance: Auto Insurance Rates Fall Almost 6 Per Cent
- Looking For Savings? How's 15% Off Your Ontario Car Insurance Sound?