How to react to the increase in the prices of auto and home insurance?

How to react to the increase in the prices of auto and home insurance?

Things are heating up in damage insurance. 20% increases at contract renewal are not uncommon. Here's how to avoid the worst.

After loosening up during confinement, damage insurers are imposing very steep increases on the renewal of auto and home insurance contracts. Even if the habits of life have not changed.

Why ?

In housing, all you have to do is follow the news: California is burning so much that the ash cloud has reached our home, hurricanes are more and more dangerous and numerous, spring floods follow one another … have better watch out!

“Thirty years ago, weather events or natural disasters in Canada cost an average of $ 400 million per year in Canada. Since 2010, this average has risen to $ 1 billion, ”explains Pauline Triplet of the Insurance Bureau of Canada (IBC).

Water damage has exploded: they represent 45% of claims, and Quebec insurers paid out 599 million in damages in this regard in 2018 alone.

In addition, insurers around the world pass part of their costs on to reinsurers, the giants of global finance.

So we end up paying for the Californian fires, and the Japanese bear the costs of our floods.

Expensive gadgets

In auto insurance, our inordinate love for gadgets and luxury has skyrocketed the cost of claims.

Before, a bumper cost $ 200 to replace. With radars and other cameras, multiply that cost by ten.

Replacing the headlight on a Toyota Colorolla cost $ 328 in 2010. It's $ 996 today.

The rearview mirror for a Honda Civic cost $ 211 in 2010, compared to $ 663 today.

In 10 years, the average premium for all types of vehicles combined has climbed 22%, but the average cost of collisions has increased by 32%. The average cost to repair a vehicle was $ 4,988 in 2019, 32% more than a decade ago, reports the IBC. Insurers are now in catch-up mode.

How to get out

The best way to counter these increases is to make your capitalist villainous: by playing competition. Shop! Each time I have done this I have saved hundreds of dollars.

Also review your covers. For example: a deductible of $ 50 or even zero means a higher premium. Replacing a windshield costs over $ 700, a new home theater over $ 3,000: can you pay $ 500 in a crash or flood? Do your math.

WHAT WE PAY AND ACTUAL COSTS (QUEBEC)

Car insurance 2009 2019 Variation
Average private car premium $ 555 $ 675 21.6%
Average cost of collisions $ 3,788 $ 4,988 32.0%
Home Insurance 2014 2018 Variation
Average premium,
all types of accommodation
$ 678 $ 778 15%
Average cost of claims $ 9,622 $ 11,330 18%

Source: Insurance Bureau of Canada

Advice

  • If you telecommute or take the bus now, negotiate a lower premium.
  • Concentrate all your protections (auto, home, ATV) with the same insurer and install humidity detection probes or an alarm system to obtain additional discounts.
  • Are you changing car? Call your insurer to find out which model costs more to insure.
  • Get discounts related to your profession or retiree status.
  • Beware of objects with coverage limits (list: https://infoassurance.ca/fr/assurance-habitation/s-assurer/limitations.aspx ).
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