Which car insurance companies saw the biggest rate increases this year?

Have your insurance rates gone up? Insurance companies may raise their rates for any number of reasons, but it all boils down to one main purpose: to ensure they have adequate funds to cover their annual claim payouts.  

According to the General Insurance Statistical Agency (GISA) , claims and adjustment expenses rose by 22%, from $9 billion in 2019 to more than $11 billion in 2023. In response to these rising costs, many insurers have sought rate hikes. The Financial Services Regulatory of Ontario’s (FSRA) website shows a nearly 20% increase in the average premium between October 2022 and October 2024. 

Let’s explore which car insurance companies implemented the biggest rate increases in 2024. 

No auto insurance company in the province can change their rates without the approval of FSRA. As the provincial regulator, it’s FSRA’s job to ensure that what a carrier proposes for their auto insurance rates is fair. 

FSRA’s approval framework ensures that rates are just, reasonable, and not excessive. However, FSRA does not set explicit caps on rate increases.  

An insurance company may be approved by FSRA to change their rates, within reason, if they have enough evidence to prove its necessary based on an increase in operating expenses and expected claim payouts.  

This system ensures that rate increases are reasonable while allowing insurers to change their rates as market conditions fluctuate. If insurance companies cannot cover their claim payouts, they could be in big trouble. FSRA is actively investigating different factors that are driving up costs including an increase in driving and inflation.  

When you buy auto insurance, you look at several insurance companies to determine which one has the best price. Even with the exact same address, car (make, model, year, mileage, etc.), demographics, insurance history, driving record, and so on, every insurer will have a unique calculation of your rate. Some will be higher, some lower. Why? 

Because insurers place various levels of importance on several factors when determining rates. One  insurance company might see gender as one of the largest predictors of making a claim, so they might charge male drivers higher rates than another provider would. One insurer may see your speeding ticket as a strong predictor of a future claim, whereas another might give you a better deal because you don’t drive as much.  

Here’s a quick example. We ran insurance quotes for three fictious drivers with eight of our most popular carriers, using the following profiles: 

With the above in mind, take a look at how their quotes vary by insurance company: 

 
While all insurance companies base their rates on the same factors, they weigh them differently. This is why each of our drivers was quoted different amounts from each of the providers.  

Insurance rates change for any number of reason, so you may see a change come renewal time.  

FSRA publishes all approved rate changes and renewal effective dates on the Auto Rate Approval section of its website. You can see which companies have an approved rate change and the effective renewal date each month.  

Knowing about incoming rate increases can give you a heads-up that a potential change to your rates is coming. This can be a good time to prepare for a potential conversation with your broker about shopping around before renewal.  

Approval dates usually precede the renewal effective date (when the increase takes effect) by several months. Drivers are highly encouraged to look at these approved changes as they may signal a potential rate increase. A particularly high rate change could be a good indication it might be time to enlist a Mitch broker to help you shop around.  

Here are the biggest auto insurance rate increases in Ontario this year (listed by renewal effective date). We’ve included the insurance companies and their insurer groups (parent companies): 

The largest approved rate change in January was 3% for Security National Insurance Company (whose insurer group is TD).  

In February, there were several larger increases including Unica Insurance Inc. (Beneva) at 12.05% and Belair (Intact) at 8.92%.  

Pafco, a member of the Allstate insurer group, had March’s highest approved rate change at 10.53%. Primmum Insurance Company (TD insurer group) was a close second with an approved change of 9.76%. 

Several changes were approved this month, with the largest (11.59%) coming from Verassure Insurance Company, of the Northbridge insurer group. Another notable increase came from Facility at 9.83%.  

The largest increase in May was from CUMIS General Insurance Company from the Co-Op insurer group with an approved rate increase of 13.26%. Echelon (CAA insurer group) also saw a significant increase of 9.96%. 

In June, Portage had a whopping 25.97% approved rate increase. S&Y Insurance Company (Aviva) had an approved rate change of 22.08% as well. 

In July, the largest approved rate change was for Commonwell Mutual Insurance Group at 12.05%. SGI was approved for a 4.97% increase and Definity for 3.84%. 

Co-operators General Insurance Company had an approved rate increase of 7.83%, while Sonnet Insurance Company (Definity) came in at a close second with 6.85%. A couple of companies (including Aviva) had approved rate decreases of nearly 1%.  

There were quite a few approved rate changes in September, with the largest being for Allstate with a jump of 5.18%. Pembridge (Allstate insurer group) increased similarly with an approved rate change of 4.75%.  

October saw a 6.28% approved rate change for Definity and a 4.91% increase for Zenith (Northbridge). A couple of companies had minor decreases that were approved by FSRA. 

Peel Mutual had the largest approved rate change this month at 5.01% with Jevco (Intact) following close behind at 5%. A couple of providers from the Aviva insurance group had around 3.5% increases, and other approved rate changes were mostly negligible by comparison.  

Nine different insurance companies had approved rate changes that were effective as of December. All of these rate changes were an increase in premiums, apart from Co-operators General Insurance company who had an approved rate decrease of 0.01%. The biggest increase came from Heartland at 7.96%. CAA had a 6.16% increase and Travelers had a 5% increase.  

The government may choose to implement a limit on how much an insurer can increase the cost of insurance during a certain period. This is valid regardless of if claims and expenses increase more than that cap.  

This is due to a concept known as rate capping. This can help protect your rates from increasing unreasonably. 

Note as well that even if your company has an approved rate increase, your rates may not shift proportionately to the slated jump. A company’s clientele may be impacted differently depending on their risk profile.  

It’s recommended to check the Auto Rate Approval section of FSRA’s website before renewal for approved rate increases from your insurer that might exceed your budget. If you spot one, contact your broker and ask them to help you explore other opportunities which could land you a lower rate. 

Insurers inform you of premium changes 30 days before you’re due to renew, so review your new price closely. If your rates have increased, our team of insurance brokers can help you look for comparable coverage at a better price. 

Give us a call for a free car insurance quote today.