Why does my car insurance cost more?

Many policyholders are paying more for their car insurance. There are three reasons why. 

1. Repair costs on the rise

Given that cars are basically computers on four wheels, they are becoming more and more expensive to repair or replace: Ubiquitous technology, the price of replacement parts and rising labour costs are all driving up the bill.  

In 2010, the cost to repair a car after a collision was $3,800. In 2020, the cost has risen to above $5,400. Such an increase inevitably has an impact on the cost of car insurance. 

hausse-primes-3-raisons-en.jpg

2. Insufficient premiums to pay claims

In recent years, the premiums charged by Quebec auto insurers have not been sufficient to cover the cost of claims. For every dollar of premium charged, insurers paid between $1.04 and $1.07 to compensate their clients and pay wages and other administrative costs.

The premium increases seen now are intended to restore balance to the market.

3. Premiums required to pay a claim 

The average cost of car insurance in Quebec is $732.2 However, if you’re involved in a collision, it costs the insurer an average of $5,400 to compensate you. Do the math: That’s more than seven times the amount paid individually! 

How do insurers make ends meet? The premiums paid by all of an insurance company’s customers are used to compensate those who have an accident.  That’s how insurance works. The increase in the cost of claims and premiums ends up affecting all drivers.  

 

hausse-primes-fonctionnement-assurance-en.jpg

If you’re unhappy with the cost of your insurance, there are several simple things you can do to pay less:

 

I WANT IT

Be prepared.
Download the Joint Report application!