Car insurance is getting more and more expensive. And it’s not your fault. But there are ways to limit the financial damage.
• Also read: The lesser known impact of renovations on your insurance
• Also read: Do the vehicle and house have to have the same insurer?
A reader writes that she is shopping to renew her car insurance.
“I bought a 2017 Hyundai Elantra new and only have 51,000km on the clock,” she wrote. My husband is the main driver and commutes to work daily (8km round trip). We drive between 8000 and 9000 km per year. »
Our reader and her husband, both 59, have been insured with the same company for three years. The last complaint they made was about their front bumper and it was over 15 years ago.
Normally, Madame takes an annual raise of about $50. But this year it’s $168. When asked to explain himself, his insurer replies: “Everything is increasing, there is nothing we can do about it.”
An answer she doesn’t accept.
Unfortunately…
Unfortunately for them (and for us), the insurer is not wrong.
The cost of insurance usually depends on customer criteria. The make, the model, the age of the vehicle, the gender, the age, the damage experience of the driver, where the vehicle lives and is used, the type of insurance, the amount of the deductible…
Always bigger
However, some factors that affect the price are beyond the insurer’s control. The combination of climate change, inflation and several other factors has created a perfect storm for insurers and their customers.
Vehicles are getting larger and loaded with a variety of devices that drive up repair costs. Lidars, cameras, sensors, ABS brakes, airbags, assisted driving or seat belt limiter systems, heated and swiveling mirrors are often the norm.
A popular bumper model ten years ago cost between $500 and $600 (parts and labor). Today it’s over $1000. Replacing a Toyota Corolla headlight can cost $2,000. It goes up to $6,000 for some vehicles!
As a result, the average Quebec auto insurance premium has increased from $536 in 2011 to $775 in 2021. The average cost of damage (what the insurer pays when they fix your car) increased from $3882 in 2011 to $5918 over the same period! While claims increased by 3.4%, repair costs increased by 11.2%, according to HelloSafe.
“Auto insurance premiums have been falling for 10 years up until 2015,” said Anne Morin, spokeswoman for the Insurance Bureau of Canada (IBC). We are in another uptrend in auto insurance prices. »
Advice
- Business. Ask at least three insurers. Do business with a broker who already does business with many insurers. We always find cheaper.
- Going from a deductible (amount covered by the insured in the event of a claim) from $50 to $500 often makes a big difference in premiums.
- Is your car getting old? Checking your needs or installing a telematics spy in your car or on your phone can save you money. Discuss this with your broker or insurer.
- A bad credit report will result in lower rates.
Do you have any information about this story that you would like to share with us?
Do you have a scoop that might be of interest to our readers?
Write to us or call us directly at 1-800-63SCOOP.