Rates FAQ
- Why are auto rates going up?
- Why are property rates going up?
- How do I get insurance if I'm a new driver?
It's upsetting to receive your renewal in the mail and discover an increase. After several years of stable rates, the average cost of car insurance has increased.
Premiums are going up due to a number of factors including an increase in fraud, more claims being reported and increase in weather-related claims, insurance companies say. Just as we've all experienced poor results on our own investments, insurance companies have also felt the crunch. Companies needs income from their investments in order to cover their underwriting losees.
Even if you haven't had a claim, your rates are likely to go up if your insurance company's overall costs have increased. Faced with rising costs, your insurer has had little choice but to raise rates in order to stay profitable to be able to pay future claims. It's so important to have a stable, financially-solid insurance company protecting you and your assets.
We can't change the up and down cycle of insurance rates, but we can offer you solutions to help with the cost. Please call us! As your broker we have access to many different insurance companies and always have some advice to help. Visit the Contact Us section and ask a Staebler broker!
Why are property rates going up?
Inflation Factor - Each year your limits of coverage automatically increase to accommodate increase costs of labour and material. This usually accounts for 5-8% of your annual premium increase.
Change in weather - In Ontario, we've experienced extreme weather... both winter and summer. Each windstorm, sudden thaw, sudden freeze, hail and thunderstorm resulted in more claims being reported. In particular, insurance companies have experienced an increase in water damage claims as a result of our up-and-down winter weather.
Higher costs for building just one home - The price paid for a new hom built in a new subdivision is much lower than the actual cost to build it individually due to a claim. Builders receive big savings for mass quantity purchases of material and labour. During a claim, your home becomes like a 'custom' built home. It's for this reason that carrying the right amount of building coverage is so important.
How do I get insurance if I'm a new driver?
Click here for more information about auto insurance for new drivers.
