Why Are Auto Insurance Rates Increasing?

Why Are Auto Insurance Rates Increasing?

According to recent reports, the auto insurance sector in Canada may experience a shift in 2023; however, this shift is likely to be represented by an increase in premiums.

Expert analysis of the Canadian auto insurance sector in 2023 shows that insurers entering the new year must not only adjust their premiums to keep up with inflation, but also need to factor in the steady increase in drivers since the easing of public health regulations in the early part of last year.

One reason why auto insurance rates have gone up this year is because of Canada's continuous inflation, which has caused insurance companies to modify their rates to keep up with the value of some forms of accident coverage.

This inflation has also impacted the deductible amounts – resulting in policyholders needing to pay more out of pocket. Along with this, insurers raised their rates after two years of rebates during the peak of the COVID-19 outbreak. All these elements serve as explanations for the changes to auto insurance rates.

According to experts, “for current policyholders, rate increases take effect at the time of renewal, so some customers may have already seen their premiums rise, while others may see it in the coming months.” They further stated that, with Ontario’s FSRA still approving rate increases, an average premium increase in the high single digits is expected.

The expectation of authorities is that auto insurance rates will rise by 5% in in the first quarter of 2023 and up to 7% in Q2. Whilst it remains unclear what the increases will be in Q3 and Q4, experts expect them to be in the 2-3% range.

Ultimately, the best option to save on auto insurance premiums remains to shop around. However, it can be hardly expected of any single individual to understand the ins and outs of all the different insurance markets out there. This quickly becomes a daunting process.

That’s where Hubbard Insurance Group comes in – we will do the research and groundwork for you. Reach out to one of our licensed experts today at 905-696-9090 or simply email us at This email address is being protected from spambots. You need JavaScript enabled to view it. in order to find the best auto insurance rates for you.

Our licensed experts will make sure you have all the coverage that is necessary for you at a cost that makes sense. Reach out to us today!

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