Top reasons for car insurance rate increases

There are many factors to consider

Even if you’re a model customer with no claims, other reasons beyond your control could be pushing your premium up.

1. Fraudulent claims are increasingly common. Fraudsters who stage accidents to make money are causing rates to increase across the country. In Ontario, the Insurance Bureau of Canada reports that fraud costs an estimated $1.6 billion per year ($236 per driver).
2. Distracted driving is on the rise. Distracted driving now outpaces drunk driving as a leading cause of accidents and deaths on the roads. Premiums are increasing to offset the costs of these claims.
3. Trends might show your area as a higher risk for collisions, theft, or other incidents. Your premiums could increase if analytics show your area has become more prone to risks (like extra traffic congestion or extreme weather events that lead to collisions, for example).
4. Medical services are more expensive. It’s not just physical repairs that can cause premiums to rise. Accident victims usually need medical services like physiotherapy to recover, which cost more every year.
5. Autonomous features mean safety, not always savings. Newer vehicles now offer a wide range of autonomous capabilities like adaptive cruise control and park assist to keep you and your passengers safe. The flip side? They also use complex computers and sensors that cost more to repair.
6. Windshields now have built-in technology. New advanced driver assistance systems make windshields more expensive to replace. Recalibrating a car’s computer system following a windshield replacement also adds to labour costs.
7. Front and rear bumper sensors are pricey. Even a tiny fender bender can require a bumper replacement, and many repairs require the car’s computer system to be recalibrated for the sensors to work. Those extra labour costs can really add up.