“Why did my car insurance price increase?”
You’ve probably asked this question to your insurance recently after you noticed that you’re paying higher for your premiums. You’re not the only one.
It’s natural to pay more if you stain your records with traffic violations and payment issues–but insurance prices are increasing across Canada in general, even for policyholders with perfect driving history.
Car insurance prices are rising due to multiple reasons: a combination of personal circumstances and socio-economic events.
Here’s a breakdown of why car insurance prices are going up in Canada.
Car Accidents
If you get into a car accident that’s your fault and an insurance claim is filed by you or the other person involved, it’ll negatively affect your driving history and will pull up your premium.
Fortunately, if you go on the next couple of years driving without so much as a scratch, you may see lower premiums again.
Traffic Violations
Speeding tickets, DUIs, suspended driver’s licences, and other traffic violations and penalties will increase the price of your car insurance.
Major offences may even cause your car insurance provider to cancel your policy completely, leaving you to set up a high-risk auto insurance plan that comes at a higher price.
Insurance Payment Issues
Your car insurance provider may require you to pay your premium in full if you miss any payment during the year.
And if you don’t pay at all, they may even cancel your plan and blacklist you so you can’t get a new policy; you’d have no choice but to settle with a high-risk insurance policy.
Higher Car Repair Prices
As car specs and tech get more modern, the prices of repairing them also go up.
That means that any damages that happen on the road will cost insurance companies more to cover, which is why they’ve pulled up their prices, as well.
Climate Change
The effects of climate change are also extending to your premiums as the unpredictable weather is causing more flooding, wildfires, and other extreme weather events that could potentially increase the number of insurance claims that have to be paid out by providers.
Increase in Distracted Driving Cases
Nearly three out of four Canadian drivers admit to distracted driving, and since car accidents are twenty-three times more likely to happen during these situations, then people are generally much more at risk on the road than before.
As a result, insurance providers have adjusted their prices to accommodate the statistics.
Insurance Prices Are Rising Everywhere
You’re not the only one affected by the rising car insurance prices in Canada.
And while it can get frustrating to have to pay more for things that are no fault of your own, there are ways to keep your monthly bills at bay, like choosing the right coverage, bundling your insurance policy, and taking advantage of any promos.
Be smart about your auto insurance decisions, and you’ll get the most out of it!