What Ontario Car Insurance Companies Can’t Use When Setting Rates

Car insurance companies in Ontario do use a number of criteria to determine rates for their customers. While they can consider a person’s driving record and age when determining the level of risk that an applicant presents, there are some pieces of information that an Ontario car insurance company is barred from using to set rates.

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An insurer cannot set pricing for customers based on the following:

  • Whether a customer has declared bankruptcy
  • Customer’s credit history
  • Employment status
  • How long individual has lived in his or her current home
  • Number of not-at-fault accidents
  • Previous lapses in coverage
  • Whether applicant has a credit card
  • Whether the vehicle to be insured is owned or leased

As of September 1, 2010, car insurance companies in Ontario cannot consider accidents where the applicant is 25 percent at fault or less when setting rates.

Car insurance companies in Ontario will still consider the age of an applicant and the make and model of the car to be insured when determining whether to offer to extend coverage in a specific case. Buying a sports car means that a driver will need to dig deeper into his or her pockets to pay for insurance coverage. Annual mileage is a factor as well and it’s possible to get better rates by keeping this figure relatively low.

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