Across Canada, home and car insurance rates are increasing.1 While some factors that determine your insurance rate are influenced by your personal circumstances, such as claims history and driving record, insurance premiums are often impacted by external factors as well.
One of the biggest factors impacting home insurance rates in Canada is the rise in extreme weather due to climate change. Since 2013, insurance claims for damage due to natural disasters such as fires, flooding and storms, have doubled compared to the previous six years.2 Also, inflation, (which increases the costs of home repairs) is another factor impacting home insurance rates.
Aside from the personal factors that determine your car insurance premiums (driving history, claims history, vehicle type, etc.) there are other factors that go into calculating your insurance rate that are beyond your control. Like home insurance, the rise in extreme weather also impacts car insurance rates: bad weather = more accidents = more claims. And distracted driving accidents across Canada are also increasing rapidly.3 Additionally, car insurance rates, which are provincially regulated, are often influenced by regional factors, such as local trends in traffic and congestion, and rising costs of repairs and medical expenses. Between 2017 and 2018 Canadian car insurance claims payments increased by 21%.4