If you opened your renewal notice this year and saw a higher car insurance premium, you’re not alone. Across Ontario, many drivers are noticing rate increases, even those with clean driving records and no recent claims.
At L.D. Dermody Insurance Brokers, we hear this question almost every day:
“Why did my car insurance go up when I didn’t do anything wrong?”
It’s a fair question, and the answer often comes down to a mix of industry-wide factors and personal changes that affect how insurers calculate risk. Let’s break it down.
1. Inflation and Rising Repair Costs
One of the biggest factors driving up premiums is the cost of repairing or replacing vehicles. Modern cars are packed with sensors, cameras, and advanced materials that make even minor collisions expensive to fix.
Parts shortages, higher labour costs, and shipping delays have all pushed repair bills higher, and insurers are paying out more per claim. Those costs are then reflected in everyone’s premiums.
2. Increased Claim Frequency and Severity
More drivers are back on the road than during the pandemic years, and that means more collisions. Insurance companies track both how often claims happen and how severe they are, and both have risen across Ontario.
When claims increase across the province, insurers must adjust rates to stay financially stable and continue paying future claims.
3. Your Postal Code or Area Risk Changed
Where you live can affect your car insurance rate. Insurers analyze claims data by postal code. If an area has a spike in accidents, thefts, or vandalism, premiums for everyone in that region may rise.
You might be the safest driver in your neighbourhood, but if local statistics worsen, your rate can still go up. It’s not personal, it’s data-driven.
4. Car Theft Is at Record Highs in Ontario
Vehicle theft is a major issue right now, especially in the GTA and surrounding areas. According to industry data, car thefts have surged in recent years, and not just for luxury models. Many SUVs and pickup trucks are now high-value targets.
Insurers have responded by increasing comprehensive coverage rates, which protect against theft and non-collision losses. Even if your car isn’t stolen, your premium can increase because of broader regional trends.
5. Rate Filings Approved by FSRA
In Ontario, the Financial Services Regulatory Authority (FSRA) reviews and approves rate changes for each insurance company. When insurers experience higher claims costs or need to adjust for inflation, they apply to FSRA for a rate increase. Once approved, those changes apply to all policyholders, even if your own driving history hasn’t changed.
This means a premium increase could reflect your insurer’s overall performance, not your individual record.
6. Policy or Vehicle Changes
Sometimes the reason for a higher premium is right in your own policy details. If you bought a newer vehicle, changed your daily commute distance, added a driver, or modified your coverage (like lowering a deductible or adding rental protection), your rate can change accordingly.
Even small updates, such as switching from pleasure use to commuting, can make a noticeable difference.
7. Loss of Discounts
Discounts play a big role in keeping rates competitive. If you’ve recently changed vehicles, missed a renewal date, or no longer qualify for certain programs (like a multi-vehicle or driver training discount), your overall premium may rise.
That’s why it’s always worth reviewing your file with a broker. We can often identify discounts you’ve lost and help you regain them.
What You Can Do About Rising Car Insurance Rates
While some factors are beyond your control, there are still practical ways to manage your costs:
✔ Review your coverage: Make sure your policy matches your current situation. If your car is older, for example, you may not need certain optional coverages.
✔ Bundle your policies: Combining your home and auto insurance can save 10–20% with many insurers.
✔ Ask about telematics programs: Usage-based insurance (UBI) apps track driving habits, and safe drivers often earn discounts over time.
✔ Shop around, safely: A licensed broker can compare quotes from multiple insurers and find one that fits your needs and budget.
✔ Maintain a clean record: Tickets and at-fault accidents can raise your premium for several years, so defensive driving truly pays off.
Why Work With a Broker
Unlike direct insurers, independent brokers work for you, not one insurance company.
At L.D. Dermody Insurance Brokers, we review every renewal to ensure our clients are getting fair value.
If your rate has gone up, we’ll explain why, check for new discounts, and explore options with other carriers if it makes sense. Our goal is to make sure your coverage stays competitive without sacrificing protection.
“Insurance doesn’t have to be confusing. We believe in plain-English advice, personalized service, and helping Ontario drivers make confident choices.”
The Bottom Line
Car insurance rates in Ontario are changing, but that doesn’t mean you’re powerless. Understanding why premiums increase, and how to respond, is the first step toward keeping your costs under control.If your car insurance has recently gone up, let’s review your policy together. We can explain the changes, compare alternatives, and help you find the best value for your needs.
📞 Call us: 905-479-1100
📧 Email: contact@lddermody.com
🌐 Visit: https://lddermody.com
