Auto insurance rates in Ontario have surged by 11.6 per cent over the past year, while home insurance premiums have seen a 10.4 per cent spike in the fourth quarter of 2024 compared to the same period in 2023. The findings, released by data firm Applied Systems Canada, highlight the ongoing impact of inflation and other market pressures on insurance costs.
Daniel Ivans, an insurance expert and licensed broker with RATESDOTCA, identifies three primary factors contributing to these increases:
- Inflationary Pressures: Rising costs for collision repairs and construction materials are driving up claim payouts for insurers.
- Increased Auto Theft: A significant uptick in vehicle thefts has strained the auto insurance industry, with insurers passing on the costs to consumers.
- Extreme Weather Events: A rise in climate-related disasters, including flooding and windstorms, has led to more claims and higher premiums for home insurance.
Despite these challenges, there are steps consumers can take to reduce their insurance costs:
- Shop Around: Compare rates from multiple insurers to ensure you’re getting the best deal.
- Bundle Policies: Many insurers offer discounts for bundling home and auto insurance.
- Increase Your Deductible: Opting for a higher deductible can lower your premium, though it means paying more out of pocket in the event of a claim.
- Maintain a Clean Driving Record: Avoid traffic violations and accidents to qualify for lower rates.
- Install Security Measures: Adding anti-theft devices or home security systems can help reduce premiums.
With insurance rates continuing to climb, consumers are encouraged to remain proactive about managing their policies. Ivans advises Ontarians to review their coverage annually and consult with licensed brokers for tailored advice.
“It’s all about making sure you’re not overpaying for the coverage you need,” Ivans said.
As the industry adapts to inflationary and environmental challenges, understanding your options and negotiating with insurers could save you money in the long run.