Ontario auto rates drop in 2004, but further savings to come in 2005

According to rate approvals from the Financial Services Commission of Ontario, the average auto insurance rate dropped 10.6% over the course of 2004. But insurers say consumers in Ontario will see even more savings in 2005.
FSCO calculates the average rate change, weighted by each insurer’s marketshare, taking in rate applications for all four quarters of 2004. But comparing rates at the end of 2004 with the end of 2003, rates fell 6.08% on average (this does not take into account fourth quarter 2004 approved rate decreases, as these will not play out until policies are renewed. Between the end of 2002 and 2003, rates increased 14.1%, on top of an average 15.8% between the end of 2001 and the end of 2002.
The Insurance Bureau of Canada (IBC) says Ontario drivers should save about $900 million in premiums this year. This is a direct result of a financially stronger, more competitive insurance industry and essential reforms undertaken by the Ontario government,” says Mark Yakabuski, Ontario region and federal affairs vice president for IBC. He advises consumers to shop around to find the best rates.
IBC data indicates an even larger decrease in actual rates than is indicated by the FSCO filings, with rates down 12% since November, 2003. And the decrease is even greater when commercial vehicles are taken into account, the IBC adds.