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Insurance

Ontario Auto Insurance Rate Change

Why Are Auto Insurance Rates Going Up?

This year you may receive your auto insurance renewal to unexpectedly find out that your insurance rate has increased. As the auto insurance industry experiences increased claims costs, insurers have been forced to raise auto insurance rates in order to cover the rising expenses.

  • In 2009, the auto insurance industry experienced a drastic increase in accident benefit (AB) claims, which are available to anyone involved in a motor vehicle accident regardless of who's at fault. Ultimately, the increase in accident benefit claims has resulted in higher insurance rates.
  • Claims reserves on existing claims did not anticipate the governments move to HST. The impact of HST on the Ontario insurance industry is estimated at $210 million.
Stats On CAA Auto Insurance Claims
  • In 2009, CAA Insurance paid out approximately $16 million more to customers than we collected in premiums.
  • Almost half of CAA Auto Insurance premiums paid for accident benefits (AB) and bodily injury (BI) losses in 2009.
Ontario Auto Insurance Reform

The Ontario government and insurance companies have been working together to provide more stable insurance rates. As a result, the auto reform, which is set to take effect September 1, 2010, will protect consumers as well as provide more choices when deciding on how much coverage to purchase.

Further details on the Ontario auto insurance reform will be included in your renewal policy package and will be provided on www.caasco.com. Please stay tuned.

What You Can Do To Lower Your Rate
  • Review your policy with a CAA Insurance agent to ensure that your coverage meets your individual needs.
  • Raise your deductible.
  • Maintain a clean driving record. Traffic violations and at-fault collisions will result in higher rates.
CAA Insurance Discounts

Starting on June 1, 2010:

  • CAA Members are eligible to save up to 15% on CAA Auto Insurance with our Member-exclusive discount.
  • Save an additional 5% on your auto insurance when you also insure your property with CAA.

To answer any questions or concerns in regards to your auto insurance rate, please call 1-877-222-1717.

Verisign Tico

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