When can you expect to see the savings?

Can you save 15% on your car insurance? It's said that the average driver spends 5.3 per cent of their disposable income on auto insurance in Ontario. That's a whole lot of money when you factor in all of the other expenses of simple day-to-day living. Fortunately, relief may be on the horizon.

The Ontario Government, with its Auto Insurance Cost and Rate Reduction Strategy is expecting to lessen this heavy load with an average 15 per cent decrease in auto insurance rates within the next two years. And while two years may sound like a long time to wait; it's expected that by the end of next summer (August, 2014) rates will have decreased, on average, eight per cent.

Chances are however, you'll see lowered car insurance rates before then. Rates will likely start to drop in early 2014 and continue to drop in increments until the 15% average reduction is fully realized.

Auto insurance renewal time: Looking forward to cheaper car insurance

Personally, when I see that envelope from my auto insurer in my mailbox, I cringe, I start to sweat and my mouth goes dry. Visions of my planned winter holiday fade to black. Next time around though, I think will be different. I expect not to have to pay more. I expect to pay less.

No matter what your usual renewal time routine, know this: don't settle for the rate you get. Drivers tend to comparison shop when their rates go up; we're motivated, mad and looking to find a cheaper option. When rates are stable though, or when they decrease, we—and we're all guilty of it—are just thankful for not having to pay more. It's a relief, and we gladly renew knowing we're not spending more. But the fact is:

  • The auto insurer who offered you the best car insurance rate last time, may not offer you the best rate this time around (and this is heightened during times of rate decreases like these).
  • Some insurers will drop their rates faster than others. Insurers have the flexibility to choose how to implement these rate changes. For example, some insurers may opt to implement small decreases frequently, while others may opt to go the way of larger decreases less often. It's really up to them so long as they adhere to what the government is mandating.

Don't settle for just 15%

As consumers, we have a tremendous opportunity to significantly save money on our auto insurance premiums in the next couple of years. There's never been a better time for drivers to find lower auto insurance rates. So, while it's easy to review and accept the renewal notice from your current auto insurer—especially if your premium decreased—don't assume you can't get a better deal.

Know for certain that you're getting the best car insurance rate available and compare car insurance quotes. Why wouldn't you want to pay less?

Learn more about the Ontario auto insurance rate changes. Read:

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