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.