With insurance rates on the rise, it’s important to realize there are many components that contribute to these increases. If you’re purchasing a new policy or renewing an existing one, these insights will help you understand how your rates are calculated. You can also find more information on how to better manage your insurance costs at mcdermottinsurance.ca
Why did car insurance increase 2020?
Fraudsters who stage accidents to make money contribute to the rising cost of insurance. In Ontario, the Insurance Bureau of Canada reports that fraud cost an estimated $1.6 billion per year ($236. Per driver).
Distracted driving now outpaces drunk driving as a leading cause of accidents and deaths on the roads. Premiums are increasing to offset the costs to these claims
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).
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.
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.
New advance driver assistance systems make windshields more expensive to replace. Recalibrating a car’s computer system following a windshield replacement also adds to labour costs.
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.