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Financial Sense/ Money Matters

The Thursday Review: Auto Insurance


Okay, so this is not a traditional review in the sense that I am not reviewing auto insurance (that would be impossible since your rates are dependant on a million factors). But, I did learn something interesting this week that I wanted to share.

My impression of insurance is that you pay into it so its there when/ if you need it. In Ontario, car insurance is mandatory if you want to drive. You get a quote based on your age and sex, the car make, model and age, where you live, your driving record, etc.

We drive a 2002 PT Cruiser. We have had it for three years. For the first two, we paid $165 a month for insurance. It never really occured to me it would change, except maybe to go down since the car was only getting older and I was continually driving without incident.

Yet, when my renewal papers came this week my rate jumped up to $195 a month! That’s a whopping $360 increase a year.

So I called them.

An extremely nice lady explained to me that it had nothing to do with me. Apparently, a lot of my neighbours have been getting in accidents and the insurance has been paying out. So, they rerated the area I live in.

In English, I am paying because my neighbours keep smashing their expensive cars!

I am probably naive in that this is a shock to me, but isn’t that the insurance company’s problem? Should they not be raising the rates of the perpetrators, and not mine? Sigh. No wonder insurance companies make billions of dollars in profit.

On the bright side, we checked other companies and ours was still Yeh cheapest. And when I explained that I was on mat leave (which is why the increase was such a big deal) they were able to lower my rate because the $195 quote had me driving to work five days a week.

So we are now at a reasonable $176 until we move or I go back to work, whichever comes first.


About Shannon

I am a university educated full-time working mother of four children. Proudly Canadian, I freeze my butt off along with my loving partner, two dogs and a cat. I hope you enjoy reading my posts as much as I love writing them, but if you have nothing nice to say, don't say anything at all.


3 thoughts on “The Thursday Review: Auto Insurance

  1. I know where I live, that different areas of the same suburb have different rates. Crazy huh?

    Posted by linbritt | May 31, 2013, 12:56 pm
    • Here it is mandated that you have auto insurance. I truly think if the government is going to do that THEY should be the ones to run the insurance. It’s not fair that they can charge whatever they like because we have no choice. It’s actually legal for them to discriminate against you based on age, sex, etc. Which is against everything else in society.

      Posted by Shannon | May 31, 2013, 5:17 pm

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