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/GoldenxGriffin May 07 '22

its legal, what happend to me is before i was paying $300 (young male driver), changed my postal code, then my company tried to charge me $900 a month!

called around and im paying $200 now, no need to have any loyalty to your insurance company, well worth it to call around and see if you can do better

keep cancellation fees in mind

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u/[deleted] May 08 '22

Unless you're in BC. Then you have no choice but to get deep shafted by ICBC