If you need to renew your car insurance anytime soon, be prepared for a possible price increase in your renewal notice. More than twenty private insurance companies in Ontario have received permission from the regional regulator to raise premiums in the coming months, as industry experts say this trend is likely to continue. Also, John Shmuel, editor-in-chief of the financial insurance site Ratedotca, said: “I wish I had good news for consumers, but all I hear is that rates are going up. I really don’t know if many insurance companies will be able to keep car insurance rates steady at this time.” Alongside inflation rates that are the highest in decades, the rise in car insurance premiums will be another blow to the wallets of Ontario consumers. But the good news is that there are ways to reduce what you pay. Over the past two and a half years, car insurance companies have handled fewer claims compared to the pre-pandemic period, as lockdowns and the shift to working from home led to fewer drivers on the roads and reduced accidents. Also, companies responded by lowering prices or keeping them steady. Some even offered discounts to customers. Additionally, the Financial Services Regulatory Authority of Ontario (FSRA), which oversees the car insurance market and is responsible for assessing and approving any price increases, approved zero increases in 2020 and only one in 2021—at 0.29 percent. But this year, FSRA approved 31 price increases, according to a public database on its website. In the same context, Shmuel said companies are seeking to raise prices now because their costs are rising as driving rates return to normal, adding: “Anywhere you look in the system, there are more costs.” Inflation leads to higher costs for new, used, and leased cars, as well as auto parts. Persistent supply chain problems also make it difficult to get parts on time. Shmuel stated that some reasons for rising insurance company costs date back to pre-pandemic times, such as how the complex design of cars has made them harder to repair. He continued that the recent increase in car thefts across the Greater Toronto Area could also put additional pressure on prices as insurance companies pay more to replace stolen vehicles. Mary Kelly, a finance professor at Wilfrid Laurier University in Waterloo, Ontario, said the cost of providing healthcare for accident victims, such as rehabilitation benefits and disability, is another factor driving up insurance company costs. Kelly said, “We know medical costs always increase [so if] your likelihood of having an accident is greater because we are back to pre-pandemic levels, those costs will also increase.” Kelly also said whether your rates go up depends on the company you get your insurance from, where you live, and other factors that affect your premium, such as your claims history and the type of car you drive. On the other hand, experts say there are several things you can do to ease the pain of rising insurance prices. Unlike other provinces across Canada that have a single public insurance company, Ontario has dozens of companies offering car insurance. This makes it possible to compare plans and prices, as you can talk to an insurance broker or check a price comparison website to find the rate that suits you. Kelly recommended young drivers look for plans that charge based on how much they drive—which can lead to lower rates in months when they are not behind the wheel much. Second, you can choose coverage that suits you, as drivers of older cars with low market value might want to avoid buying optional additional coverage such as collision and comprehensive coverage. For example, if you own a 15-year-old car worth less than $500, it may not be worth it or even possible to replace it after an accident. Third, bundle your insurance, as companies often offer discounts to customers who buy home and/or auto and/or renter’s insurance from the same company. Fourth, increase your deductible, that is, the amount you pay for repairs or replacement before the insurance company starts paying the claim. Most companies offer the option to pay a $500 or $1000 deductible, and choosing a higher deductible will reduce the insurance premium you pay monthly, which can lead to significant savings for drivers who go a long time without filing a claim.