There has been a lot going on in the auto insurance industry in Ontario in 2016. Only a few weeks in, and the new discount for drivers with snow tires took effect, Aviva Canada announced the first ever insurance policy for ride sharing services like Uber, and Premier Kathleen Wynne recently announced that the promised 15% insurance rate cut was a ‘stretch goal.’

Snow Tire Discount

Ontario drivers might need to wait longer than expected to see their snow tire insurance discount. While the new rules came into effect on January 1^st, most drivers will not see the discount until they renew their policy. For some, this could mean they will have to wait until December 2016.

“If your policy was purchased in October and doesn’t renew until next October… that discount will be added onto the policy at renewal next year,” said Pete Karageorgos of the Insurance Bureau of Canada to CTV News. When it does come time to renew your policy, while many insurers do not require a receipt for proof of winter tires, it’s important to keep documentation just in case you are asked to show proof.

Aviva Canada’s Uber Policy

Aviva Canada has become the first insurance company to develop a policy for ride sharing services such as Uber. This is good news for ride sharing drivers and small businesses that offer these services. The coverage will be available in February in Ontario and will expand to other provinces in the coming months.

“There’s a clear need for this — there’s a gap in coverage,” Aviva spokesman Glenn Cooper said in an interview with Financial Post.

“This is for those people who want to earn some extra cash, but also want to be protected and want their passengers to be protected.”

Kathleen Wynne Backtracking on 15% Auto Insurance Rate Cut

Ontario drivers were elated to learn that the provincial government planned to reduce auto insurance rates by 15%. The provincial Liberals originally promised to reduce car insurance premiums by an average of 15% by August 2015. This was part of their deal to get support from the NDP as part of the 2013 budget. Fast forward to today, and the average discount has only reached about 7% - only half of what was promised.

“We always knew it was a stretch goal,” Wynne said to National Post in response. “We always knew it was going to be a challenge, and the good news is that insurance rates continue to come down.”
This is the first time the term “stretch goal” was ever used. However, the government said they will keep their promise of a 15% cut but would not put a date on their new pledge to lower auto insurance rates in Ontario.

Put an Auto Insurance Broker to Work for You!

Auto insurance is always changing, and it can be difficult to stay on top of the latest industry news and take advantage of car insurance changes. Rather than waiting around for the new discounts to come into effect, why not work with a Toronto auto insurance broker who can help you save money on your auto insurance policy today?

Contact me anytime to learn about how an auto insurance broker is beneficial. Get a free auto insurance quote today!