Have auto insurance? Then you probably feel your premiums are going up year after year. It’s not just a feeling, and it’s not just your policy. Auto insurance rates indeed rose again in the second quarter of 2017. Based on rates posted by the Financial Services Commission of Ontario, there was an increase of 0.76% over just the last quarter.
If rates increase ~1% every three months, it could mean an average of 4% increase during policy renewals. This 4% increase is averaged out amongst clients; some see an increase of 2%, while others may pay up to 8% more when it’s time to renew.
Insurance claim costs are going up, as well as the cost of labour and other company expenses. Unfortunately, these extra costs are what cause your car insurance premiums to go up.
How rate increases affect you individually depends on each insurance company. Each insurer calculates its risks differently, based on the company’s portfolio of clients and their claims.
Some factors insurers take into consideration when calculating individual premiums:
- Location – Where you live & park your car
- Driving History – Your driving experience, years insured, claim & conviction history
- Vehicle – Whether your car is new or old, its car value
Also, insurance companies may have different schedules for rate adjustments. This means rate increases could depend on renewal date and the market conditions at the time.
source from: BrokerTeam Insurance