Ontario Drivers Annoyed When Automotive Insurance Rises After ZIP Code Change – Newstalk 1010 (iHeartRadio)
Many car owners find it frustrating when they have to pay more money for auto insurance premiums because they are moving to a different zip code.
But one Ontario man said he was shocked when his auto insurance went up after Canada Post changed his zip code, but he didn't actually move.
"It's frustrating, it's incredibly frustrating," said Dave Neale, who lives on an estate north of Orangeville.
Canada Post has changed zip codes over the years, which has resulted in some insurance companies increasing their insurance premiums, but unless you are physically moving, they shouldn't.
Neale and his wife Aileen own four cars, including a BMW Z3 and a Porsche Cayman S, and in 2013 Canada Post changed their zip code from their country address to one that includes downtown Orangeville.
"You have now decided to sort our mail at a facility in Orangeville, and as such, my zip code is the sorting facility, but my address is of course my house in the country," explained Neale.
Over the past eight years, Neale said he has been overcharged for auto insurance several times, most recently nearly $ 300 for her Porsche. And while he was able to reverse the fees in the past, he was told that in the future it will be billed based on Orangeville's zip code, even though they never moved.
"As of my renewal, which would take place in February 2022, all of my cars will be in Area 22, or as I say, the sorting facility," said Neale.
The Financial Services Regulatory Authority of Ontario (FSRA) oversees auto insurance and says insurers cannot use a new zip code to re-evaluate vehicles unless the customer has physically moved from their current address.
A spokesman for the FSRA told CTV News Toronto: “The FSRA is committed to strengthening consumer protection related to auto insurance by ensuring availability, enforcing oversight and achieving regulatory efficiency. We encourage consumers to contact the FSRA if they have unresolved concerns about their auto insurance. ”
"The 2006 bulletin is still up-to-date on auto insurance rating areas and zip code changes by Canada Post. The FSRA expects insurers to adjust their systems to ensure customers are rated based on the area they live in rather than the area in which they post their zip code. If errors occur, it is the responsibility of the insurer to ensure that the error has been corrected, that changes are made and that their customers are treated fairly and the correct premium is billed. "
The FSRA spokesman also added, “Territory definitions are part of an insurer's risk classification system and require FSRA approval. An insurer cannot change area tariffs without an approved filing because Canada Post has made changes to zip codes. "
Neale is insured with Intact Insurance, and a spokesperson told CTV News Toronto: “At Intact, we are working to ensure that auto insurance meets customer needs. Motor vehicle insurance premiums are based on a risk profile and usage, which is determined by a combination of factors such as vehicle type and safety rating, driving history, mileage, location of the vehicle, place of residence, age of the driver, type of insurance cover and the deductible. "
“We encourage clients to work with their broker if they have any questions or concerns about their rewards. Intact worked closely with the client and the client's agent to address their concerns, ”added the Intact spokesman.
In the end, Neale received a refund of nearly $ 300 on his Porsche policy and should now see no increase in the premiums of his other vehicle.
Neale said everyone should know if your zip code changes, but you haven't moved.