Year after year, you systematically renew your auto insurance policy without giving it much thought. You’re even willing to accept a slight annual increase if it means you can avoid spending hours on the phone shopping around for coverage.
However, this year, SURPRISE! Like many Quebecers, you have probably noticed a significant increase in your auto insurance premium. In this article, Assurances Multi-Risques would like to clarify what is behind this premium increase, which affects you, but also the entire auto insurance industry in Quebec.
Why are auto insurance premiums increasing?
There’s no doubt that buying a new car is much more fun than insuring it. However, providing your vehicle with adequate coverage is a way to protect your investment in the event of a major disaster or accident. This way, you can drive with peace of mind! Nevertheless, paying your premium isn’t the most exciting thing in the world, so when it goes up… it’s normal to wonder if it’s justified. Here’s what explains this year’s steep increase:
According to data from the Groupement des assureurs automobiles , the average auto insurance premium was $566 in 2007 and $564 in 2017. In 10 years, the average auto insurance premium has decreased by $2, despite the increase in the cost of living and insurers’ expenses. In addition, over the past 10 years, the average cost of auto claims in Quebec has increased by 17% for property damage to vehicles and 41% for civil liability claims. The cost of vehicle repairs has also risen due to the increased presence of electronics. In addition, the frequency of accidents, and therefore claims, has also increased by 6%.
As a result, for several years now, auto insurers in Quebec have been unable to make the auto insurance sector profitable due to shortfalls in auto insurance premiums. However, they have a duty of care and must therefore ensure that they collect the correct premium in order to be able to compensate their customers when necessary.
If you would like to learn more, we invite you to read two extremely interesting articles from TVA Nouvelles and Protégez-vous magazine that summarize our explanations:
Read the TVA Nouvelles article
Read the article in Protégez-vous
How can you reduce your car insurance premium?
We have already shared an article on our best tips for reducing your premium amount. We invite you to read it by clicking here.
In summary, if you have noticed a significant increase in your car insurance premium this year, we recommend contacting an independent insurance broker who can shop around for you among several insurance companies and guide you toward the best option. They can also update your file and ensure that the information it contains is accurate in order to maximize your insurance discounts and avoid any ambiguity that could cause you problems in the event of a claim. And while your broker takes care of everything, you’ll have time to enjoy your hobbies and, why not, a long drive…