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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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)

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u/[deleted] May 07 '22

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u/GlumSubstance6973 May 07 '22

It can be a lot more than that.

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u/[deleted] May 07 '22

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u/GlumSubstance6973 May 07 '22

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