Over the last year and a half, insurance rates have been on the rise across Canada. A variety of factors has caused these increases, some across the country, and others specifically in Ontario.
As your insurance broker we take the time to review your policy prior to your renewal to ensure that you coverage is up to date and your rates are competitive. As an independent broker we work for you, not the insurance companies to ensure that you and your family are protected.
Automobile ClaimsCosts of repairing vehicles has increased significantly with the increased amount of technology being built into vehicles, this cost has outpaced the inflation cost built into insurance pricing. Sensors, back up cameras, and smart devices built into vehicles, in turn make the repair costs much higher for even a simple bumper repair. Additionally the frequency of claims is increasing due to distracted driving, with the number of distracted driving deaths doubling since 2000.
Climate Related Losses Extreme Weather EventsThe change in weather patterns and the increased frequency of water related losses and storms has impacted insurers profitability and also resulted in increased re-insurance costs. The cost of individual claims has also increased as these water related loses typically cause damage to the basement and lower levels of a home. A finished basement that is damaged by a sewer back up or water claim requires restoration, rebuild and replacement of any contents and electronics. Specific neighborhoods that experience a flash flood can give rise to unanticipated losses for an insurer. Even events like the California wild fires that do not have any impact directly can affect Canadian insurers in the reinsurance market.
Why Do Ontario Drivers Pay More?
- The minimum coverage offered to consumers is set by the Ontario government and is broader than other provinces.
- Insurers cover medical expenses after a car accident, the majority of these costs are not covered by OHIP, which isn't the case elsewhere in Canada.
- Insurance fraud is much more prevalent in Ontario than elsewhere in the country.
- Many inefficiencies in the auto insurance framework in Ontario leads to higher rates across the board
Business insurance policies are feeling the repercussions of overall rate increases as well. Most business owners will see rising insurance costs over the next few years. Some may find it difficult to insure their new business or even receive non-renewals as insurers re-evaluate the industries that they insure.