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HomeNationalSome Ontarians may see an increase in auto insurance rates in the...

Some Ontarians may see an increase in auto insurance rates in the coming monthsTAZAA News

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Some Ontario drivers expect to pay more for their auto insurance premiums in the coming months because the insurance industry’s governing body has approved a rate hike.

While the Financial Services Regulatory Authority of Ontario (FSRAO) has not approved industry-wide rate hikes, it recently approved hikes for Intact (3.44 percent), Verrasure (4.96 percent), Belair (3.6 percent) and Aviva (2). -3.38 percent).

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In June, Pafco and Allstate had nearly five percent increases, while Zenith Insurance, part of Northbridge Insurer Group, saw an approval increase of 10.37 percent.

“The rate increase is not unexpected, as the rate of inflation and supply chain issues are driving Canadians back on the roads as pandemic restrictions ease, increasing the cost of claims,” ​​said Tanisha Kishan, an insurance expert at RatesDotka.

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“Many drivers can expect their rates to increase at their next renewal.”

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It will take a few months before most insurance rates take effect, but people can check the FSRAO website to find out if their rates will increase and when the increase will take effect.

Auto insurance companies have to get FSRAO’s seal of approval before increasing their rates.

On its website, the regulatory agency said that a profit should be sufficient to cover claims liabilities and costs and also allow for a reasonable profit.

It also notes that premium increases or decreases may occur as a customer moves to a new area, buys a new or used vehicle or receives a speeding ticket.

© 2022 Global News, a division of Chorus Entertainment Inc.

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