Car Insurance Rate Increases: Top Ways to Save

Last Updated:
December 9, 2019
Karen Spencer
Time to Read:

Here are 7 reasons that car insurance rates in Ontario have increased over the few years.

Fraudulent Claims are Increasingly Common: In Ontario, the Insurance Bureau of Canada (IBC) reports that fraud costs an estimated $1.6 billion per year ($236 per driver).

Distracted Driving is on the Rise: Distracted driving now outpaces drunk driving as the leading cause of accidents and deaths on the roads. Premiums are increasing to offset the costs of these claims.

Trends Might Show Your Area As A Higher Risk for Collisions, Theft, or Other Incidents: If analytics show your area has become more prone to risks, your premiums could increase. For example if extra traffic congestion leads to more collisions.

Medical Services Are More Expensive: It isn't just physical repairs that can cause premiums to rise. Accident victims usually need medical services like physiotherapy to recover, which costs more every year.

Autonomous Features Mean Safety, Not Always Savings: Newer vehicles now offer a wide range of autonomous capabilities but these use complex computers and sensors that are costly to repair.

Windshields Now Have Built-In Technology: Recalibrating a car's computer system following a windshield replacement also adds to labour costs.

Front and Rear Bumper Sensors are Pricey: Many fender repairs require the car's computer system to be recalibrated for the sensors to work.