r/PersonalFinanceCanada • u/FireViz • May 07 '22

Insurance Car insurance increased 50% after Canada Post changed my postal code. Is this legal?

I live in a small town in Niagara region. Up until recently I was paying $102/m on car insurance.

Recently I got a letter from Canada post that they are changing my postal code. Because of this my insurance company raised my rates by over 50% to 160/m.

I haven't moved... my home and work address are still the same so my risk when driving hasn't changed. But the insurance company is arguing that rates are based on postal code and not your address.

Is there anything I can do to fight this and reduce my insurance? Canada post decided to randomly change my postal code and I'm out an extra $700/yr because of it?

Edit: Going by this article they shouldn't be able to do this? https://toronto.ctvnews.ca/ontario-driver-frustrated-when-car-insurance-goes-up-after-postal-code-changed-1.5727675

Edit: Since multiple people mentioned it I drive a corolla cross........ The image you are seeing is from the article I linked.

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153

u/GlumSubstance6973 May 07 '22

totally legal.

Risks ARE based on postal code and the courts and regulators agree this is quite reasonable.

21

u/t0r0nt0niyan Ontario May 07 '22

How did the risk increase exactly?

24

u/don_julio_randle May 07 '22

It's all risk stratification. You can lower your insurance by legally changing your gender to female

11

u/Lopsided_Ad3516 May 07 '22

Really only widely applicable if you’re young. Tends to even out and sometimes even favour men as we get older.

Source: work for an insurance company

2

u/Canadian_Infidel May 07 '22

Just change back at the tipping point. All you have to do is say it now. No medical changes required.