For three consecutive years (2007, 2008 and 2009), Ontario car insurance rates increased. Rate changes approved by the Financial Services Commission of Ontario (FSCO) averaged an increase of 0.55 per cent in 2007, 5.59 per cent in 2008 and 8.87 per cent in 2009. For Ontario drivers, reforms couldn't have come at a better time as insurance rates trended upwards.

Fortunately, for Ontario auto insurance consumers, the Insurance Act was amended in 2003 requiring an auto insurance review every five years. The first 'Report on the Five Year Review of Automobile Insurance' resulted in a suite of 41 proposed reforms in November, 2009. In March, 2010 new regulations were announced.

The reforms came into effect on September 1, 2010 and focused on three key initiatives: protecting consumers, offering consumers more choice and streamlining Ontario's auto insurance system. The purpose of each initiative is to provide Ontario's auto insurance system with greater price stability.

Kanetix's reform centre: Ontario's 2010 auto insurance reforms

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