Insights into rising insurance rates

Have you received your insurance policy renewal and wondered why your premium increased despite having no changes to your car or home, and no claims? 

How insurance premiums are determined

Insurance premiums are set by insurance companies based on the risk that a customer will make a claim and how much the claim will cost. There are many factors that are unique to you and your situation that are considered when determining premiums. It’s important to note that insurers pool the premiums of many policyholders to cover the losses claimed by the few in any given year.


What’s considered
For auto insurance, the type of vehicle you drive, your age, gender and marital status, driving history, years licensed, where you live, claims history, and how frequently you drive are a few factors that determine your premium.

For home insurance, some factors include the replacement cost of your home and possessions, how well your home is maintained, any upgrades made such as electrical, roof and plumbing, where you live, and claims history.

The Insurance Bureau of Canada has a number of resources that explains in detail how insurance rates are determined – it’s a worthwhile read to help understand what’s behind your premium.

Other factors that affect insurance rates


Inflation has been front and centre in Canada in the past few years. Despite easing recently, the industry is still feeling the effects of high inflation and interest rates, with continuing increases in the price of goods and services. Like any other business, insurance companies are still dealing with higher costs for parts, services and goods, which in turn increase the cost of paying out claims.

Severe Weather

In a report by the Insurance Bureau of Canada, the number and severity of weather events resulting in catastrophic losses have increased dramatically over the last decade. In 2022, there were disasters in nearly every part of the country, making it the third-worst year for insured losses in Canadian history with $3.4 billion in damages.

Auto theft

Auto theft continues to be a serious issue in Canada, with insurance claims reaching a record-breaking $1.5 billion in 2023, according to a recent news article by the Globe and Mail. It is now estimated that a vehicle is stolen every five minutes.

It’s always a good idea to review your coverage

Your insurance coverage and premium are based on the information that you have provided and there may have been changes in your situation over the past year. It’s always good to review your information before your policy renews and update your broker so that your renewal is up-to-date. Some changes can result in additional savings, or may require additional coverages to ensure that you are protected.


Useful tips to help lower your premiums

If your car is on the high-theft list

You may see an additional charge to reflect the increased risk of the vehicle being stolen. You can avoid this charge by installing an approved anti-theft device such as Tag. Some insurance companies provide special pricing for Tag installation.

Bundle your home and auto insurance

Most insurance companies give additional savings if you insure your home and auto policies together under one provider.

Check your deductibles 

If you are able to increase your deductible (the amount you pay in the event of a claim), this can help reduce your premium.

Contact your insurance broker to review your policy or to get a quote

We are dedicated to offering you the best personalized care and service to make sure that you have the insurance coverage to protect your assets.

As your insurance broker, I am here to help you find the best coverage, provide you with professional advice to answer all your questions about your policy.