As a driver in the Greater Toronto Area and in Ontario you may be glad to hear of industry initiatives which insurers and industry experts are hoping help control the cost of auto insurance. Read more below on Toronto car insurance and changes to the Ontario auto insurance industry.
Toronto Car Insurance Rate Reductions
As mentioned you may be pleased to hear that the Ontario government is taking action to help consumers save money on auto insurance. The initiatives are targeting an average 15 percent car insurance rate reduction in the next two years. Below are some ways the province hopes to achieve these results.
- The Superintendent of Financial Services the authority to require insurers to refile their rates on insurance
- Making guidelines on accident benefits costs
- Clamping down on fraud including licensing health clinics which bill car insurance companies
- Exploring the initiatives such as provincial oversight of the towing industry and collision repair practices
- The continuing for insurers to offer discounts for consumers with safe driving records
Usage Based Insurance Gets More Popular
One method insurers are hoping will achieve the 15 percent reduction is by implementing usage based car insurance. Some companies in Ontario have already launched this system of determining car insurance rates. This is done by installing a device which tracks variables such as how hard you brake, how fast you accelerate, the times at which you driver and other variables. Good drivers can then be rewarded for good driving characteristics on renewal by rate reductions. Many opponents of this form of usage based car insurance believe it is an invasive technology while others have no problems installing it. What do you think?
Remember Some Tips to Save on Car Insurance
Methods to save on car insurance exist for consumers but it is important that each consumer knows them. Below are just a few methods you can use to save on car insurance.
- Having a good driving history with no tickets and claims
- Paying the premium on time will prevent penalty charges, as well if your policy does get cancelled for non-sufficient funds it may be harder to get insurance in the future
- Having valuable coverages on your vehicle, such covereges such as comprehensive or collision coverages may not be valuable on older vehicles, especially with a high deductible
- Bundling home and auto insurance with the same company can reduce the premium
- Insuring all vehicles in the household with the same company may result in a multi-vehicle discount
- Completing a recognized driving program
- Company specific discounts such as winter tires, driving a hybrid vehicle and other discounts could result in a discount from the insurance company