Car rates

Ontario driver frustrated as auto insurance increases after postal code change

An Ontarian said he was shocked when his auto insurance increased after Canada Post changed his postal code, but he hasn’t actually moved.

“It’s frustrating beyond belief,” said Dave Neale, who lives on a country estate north of Orangeville, Ont.

Canada Post has changed postal codes over the years and this has caused some insurance companies to increase their insurance premiums, but if you don’t physically move they aren’t supposed to.

Neale and his wife Aileen have four cars, including a BMW Z3 and a Porsche Cayman S. In 2013, Canada Post changed the postal code from their country property address to one that includes downtown Orangeville.

“They have now decided to sort our mail at a facility in Orangeville and as such my zip code represents the sorting facility, but of course my address is my house in the country,” Neale explained.

Over the past eight years, Neale said he’s been overcharged on auto insurance on several occasions, most recently nearly $ 300 on their Porsches.

And while he may have had the fees waived in the past, he’s been told that in the future he will be billed based on the Orangeville zip code, even though they’ve never moved.

“As of my renewal, which would take place in February 2022, all of my cars will be in Territory 22 or as I would say, the sorting center,” Neale said.

The Financial Services Regulatory Authority of Ontario (ARSF) oversees auto insurance and says insurers are not allowed to use a new postal code to re-evaluate vehicles if the customer has not physically moved from their current address.

“FSRA is committed to strengthening consumer protection related to auto insurance by ensuring availability, enforcing regulatory oversight and ensuring regulatory effectiveness. We encourage consumers to contact FSRA if they have unresolved concerns about their auto insurance, ”an FSRA spokesperson told CTV News Toronto.

“Regarding auto insurance pricing territories and postal code changes by Canada Post, the bulletin released in 2006 is still up to date. the territory in which their postal code places them. If errors do occur, it is the insurer’s responsibility to ensure that the error is corrected and that its customers are treated fairly and are billed the correct premium.

Neale is insured with Intact Insurance, and a spokesperson told CTV News Toronto, “At Intact, we work to make sure auto insurance meets the needs of customers. Auto insurance premiums are based on a risk profile and usage determined by a combination of factors. including vehicle type and safety rating, driving record, mileage, where the car is driven, where you live, age of driver, type of coverage and deductible. “

“We encourage clients to work with their broker if they have any questions or concerns about their premiums. Intact has worked closely with the client and the client’s broker to address their concerns,” added the door. – speech of Intact.

In the end, Neale received a refund of almost $ 300 for his Porsche policy and is not expected to see any increase in premiums for his other vehicle in the future.

Neale said everyone should know if your zip code changes, but you haven’t moved, there’s no reason your car insurance rates will go up and if they do you should complain. and reduce them to what they were before.