Why are car insurance premiums going up so much?
It's a common concern among most Albertans, and most Canadians, that auto insurance premiums have been rising quickly and putting pressure on people's wallets.
Common causes include:
- Inflation (vehicles are more expensive, leading to higher repair and replacement costs)
- Technology (vehicles have more sensitive and expensive sensor, motorize components, etc. which increase repair bills)
- Legal settlement claims (bodily injury settlement costs have gone up)
- Higher collision frequency and severity (could be caused by more congestion on roads, distracted driving, etc.)
- ...and others
Canadian Underwriter has published an article entitled Why Canada’s auto line isn’t stable — or profitable which also points out that regulation plays a factor because the new IFRS 17 metric, or Net Insurance Service Ratio (NISR) produces higher loss ratios because it includes more 'soft costs' like acquisition costs, reinsurance costs, and commissions in the loss ratios.
First Foundation represents many of Alberta's best auto insurance companies and offers competitive quotes aimed at delivering great protection to all Albertans.
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