Did you recently get your car insurance renewal and were shocked to learn that your premium increased? If you did, you’re not alone as Auto Insurance rates are expected to increase on average 3.35% in Ontario! While there are many stipulations for why this increase could happen to a driver, it’s important for policyholders to understand exactly what factors could cause their rates to increase.
Factors That Are Within Your Control
When we are discussing factors that can increase your Auto Insurance rates that are within your control, we’re specifically talking about your involvement in events while driving. Some examples are being involved in a collision where you were at-fault, having traffic tickets or violations, as well as having your license suspended due to these tickets or violations. While most of these are widely known and accepted, it’s crucial to bring up the importance of following the rules of the road. Being unaware of changing rules or regulations may cause you to be
Factors That Are Not Within Your Control
In comparison, there are a few reasons that are not within your control for why your Auto Insurance rates have increased. Again, while some could be assumed, it’s important to shed some light on additional factors so drivers can better understand their insurance. Below are four of the most common reasons.
1. The Cost To Repair Modern Vehicles Can Be Expensive
As vehicles become more extravagant, innovative and advanced, often so do the fees when it comes to maintaining or repairing them. Often, newer cars require more technical or electronic options, and usually, these features are not cheap to replace or repair. Meaning, insurance companies need to provide drivers with higher premiums to be able to afford the costs if the policyholder was in an accident or their vehicle was damaged.
2. Car Insurance Fraud
In March of 2018, Aviva Insurance conducted a fraud investigation and found that Auto Insurance fraud is estimated to cost Canadians more than $2 billion every year. Within their
3. Medical Services Are Becoming More Expensive
Similar to how vehicles are becoming more advanced, medical services are as well. Meaning, if an individual is injured in an accident, their medical treatment may be more expensive now, than it was 10 years ago. This is specifically related to the advanced medical treatment that is available and how certain injuries may require unique medical attention. So again, insurance companies must take into consideration these changes when selling Auto Insurance.
4. Collision And Theft Trends
As one may already know, where you live can greatly affect your premium. If you previously did not know why, it’s because some locations have higher rates of claims. This is often because there are more incidents of collision or theft in a specific area. Meaning, if someone moves to a location that has higher rates of auto theft or collision, insurance companies again, must be able to compensate for this increased likelihood of theft or collision. However, similarly, if you move somewhere that has a lower rate of theft or collision, your insurance should decrease.
Whether or not you’ve seen a drastic increase in your insurance renewal, our team is here to help. Since we’re a brokerage, we work with you in mind, every step of the way when you’re buying Auto Insurance. Meaning, we’ll try to find you the best coverage, for the best price. If you’re interested to learn more about our services, or how we may be able to find you a lower rate, contact us today!