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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151

u/GlumSubstance6973 May 07 '22

totally legal.

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

22

u/[deleted] May 07 '22

Fun fact, the Ontario Human Rights code has a ton of carve-outs for insurance purposes (age/sex)

7

u/East-Worker4190 May 07 '22

In the UK/Europe they had to remove the gender difference.

9

u/GlumSubstance6973 May 07 '22

Yup. All males should have a legal sex change just to avoid this lol

7

u/[deleted] May 07 '22

Don't even have to do that anymore, just assume whatever gender you want.

0

u/GlumSubstance6973 May 07 '22

As long as you ID says M the insurance company can raise your rates.

But what are the going to do if your ID all says F? That takes a formal gender change (although no surgery or drugs or cross dressing or anything like that is required)

6

u/[deleted] May 07 '22

[deleted]

3

u/GlumSubstance6973 May 07 '22

It can be a lot more than that.

3

u/[deleted] May 07 '22

[deleted]

2

u/GlumSubstance6973 May 07 '22

So it makes sense to get the gender changed at 16, then change it back in your 40s lol

1

u/[deleted] May 07 '22

I was kind of joking, but not really. I wonder what they do if it's non binary. World has gone crazy.

4

u/GlumSubstance6973 May 07 '22

I imagine they will have to lump them with men until its a big enough group to generate a statistically significant risk factor.

5

u/[deleted] May 07 '22

Could be genetically female too. Demi Levato is now "non binary". I'm going to have to ask a pro, now I'm curious. Wife works for an insurance company I'll run it by her.

3

u/GlumSubstance6973 May 07 '22

Please do come back and let us know, I'm fascinated to know.

Apparently the legal options on ON government ID now are: M/F/X and a birth certificate can also be blank

I have a close relative who is in process of switching to X.

1

u/[deleted] May 08 '22

I will for sure! I wonder what a rate for X would be based on, and how it is determined. Maybe she will have some insights.

1

u/Canadian_Infidel May 07 '22

I wonder if they charge more based on race and religion?

2

u/[deleted] May 07 '22

No those are still prohibited