Many insured Canadians are noticing a hike in their home and auto insurance premiums.
In general terms, this increase is due to four factors:
- Extreme and costly weather changes – Devastating flooding, droughts leading to wildfires and widespread tornados cost the Canadian insured billions of dollars each and every year.
- The soaring costs of building materials – This may result in your home being under-insured in the event of an insurance claim.
- The improved and expensive technology in today’s vehicles – The expense to repair the high-tech enhancements in newer vehicles often results in significantly higher claims payout, as these features are simply not cost effective to fix.
- The high price of insurance fraud – As an example, it's estimated that 5-15% percent of auto insurance premiums go towards the cost of fraud, and costs Canadians between 1.6 and 2 billion dollars per year.
While we can’t control the weather, the rise of technology, increasing building costs or fraudulent behavior, there are a few things we can control:
- Best the best driver you can be.
- Practice safe, alert and defensive driving.
- Keep in contact with your insurance professional about any changes in your driving habits.
- Take proactive measures in and around your home to prevent flooding, theft, wind damage and fire.
- Report insurance fraud. If you’re aware of insurance fraud, you can anonymously report it: 1-877-IBC-TIPS (422-8477)
- Be sure your house insurance coverage accurately reflects the value of your home and your possessions.
- When your insurance is due for renewal, reach out to an experienced insurance broker to review your current needs and allow them to shop the market for you for the coverage you need and potential savings.