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January 20, 2022

Ontario auto insurance rates to spike this March

Each January, there always seems to be an unpleasant shoe that drops from the year before.

Monday, we discussed the holiday spending hangover – where all the purchases we’d made in December were popping back up in the form of due credit card bills.

And now, Canadian motorists (in Ontario, at least) will have to open their wallets a little wider based on government approvals made in 2009.

News broke today that the cost of Ontario auto insurance is set to spike this March, an increase of as much 15 per cent with some providers.

According to The Star, the authorization granted to 22 insurers last November is set to kick in the month after next, with jacked-up premium rates boosting average costs all across the province.

In what’s another raise from the 5.59 per cent increase in 2008, the Financial Services Commission of Ontario said last year’s approved insurance rate increases will total an average boost of 8.77 per cent when they’re put into action this March.

Providers like Traders General Insurance Co. of Canada, Dominion of Canada General Insurance, Economical Mutual Insurance, Pilot Insurance and Unifund Assurance will levy some of the biggest rate hikes upon customers. Traders, for example, will increase its rates by close to 30 per cent over the next two years.

Now, aside from being just awful, awful news for motorists, two things jump out about this information:

The first, of course, is that drivers in the GTA (an affliction from which I suffer) are primed to be the most susceptible to higher rates.

What’s the second? That people are pissed, that’s what.

“I wish my salary would be increased by 10-15% … as the insurance comps (sic) get,” writes user cherican on

“Inflation is low, why are these comps getting 4x, 5x, and some even more than that (of) the inflation rate? This is ridiculous. Average Joe can’t keep up with these increases.”

By Jason Buckland, MSN Money



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Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...

James HaversJames Havers

James is the senior editor of MSN Money living in Toronto. He has worked for the Nikkei Shimbun (Tokyo),,, Canadian Business and other publications. Havers turned to journalism after teaching overseas.

Jason BucklandJason Buckland

The modern-day MC Hammer of money, Jason can often be seen spending cash that isn’t his with the efficiency of a Wilt Chamberlain first date. After cutting his teeth as a reporter for the Toronto Sun, he joined the MSN Money team with...