Auto insurance rates ultimately reflect the experience that a company has. An insurance company cannot be allowed to lose money because they will eventually go bankrupt and be unable to keep their promises. Insurance in the US is a state responsibility and it is the state commissioner that approves the rates and the way that the rate is determined. In my state, California, the electorate took over the matter of rating and greatly limited the factors that could be considered. Whoever approves rating plans in your province could provide specific information about the manner in which rates are determined.