“2023 Brings Auto Insurance Premium Hikes for Canadian Drivers: RATESDOTCA Report”
The Canadian auto insurance market is set to experience changes in 2023, but these changes come with a cost. The rate comparison website RATESDOTCA has published its latest outlook of the Canadian auto insurance industry, which predicts rate increases in 2023. In this article, we will discuss why auto insurance rates are going up, what drivers in Ontario and Alberta can expect, and what policyholders can do to save on their auto insurance premiums.
Inflation Brings Changes to Auto Insurance Rates
RATESDOTCA attributes the rising auto insurance rates to the ongoing inflation in Canada. Inflation has forced insurance providers to adjust their rates to maintain the value of accident benefits, resulting in higher premiums. The inflation also affected deductible amounts, which means policyholders will pay more out of pocket. Additionally, insurers are raising their rates after offering rebates during the COVID-19 pandemic.
Rate Increases in Ontario and Alberta
RATESDOTCA took a closer look at the auto insurance markets in Ontario and Alberta. In Ontario, drivers can expect their rates to increase, and the timing of the increase will depend on when a customer’s policy is set to renew. RATESDOTCA predicts that the average premium increase in Ontario will be in the high single digits, with an increase of 5% in the first quarter and up to 7% in the second quarter of 2023. The rate increases in Q3 and Q4 remain unclear, but RATESDOTCA hints that the increases during these periods may be similar to those in Q2.
In Alberta, the situation is different, with rate approvals significantly lower (between 2% and 3%) last year. The NDP party has even drafted a bill to freeze rate changes for a year, which they would pass if elected. Although RATESDOTCA predicts that Albertan drivers will pay more for auto insurance this year, the increases will not be as high as those in Ontario.
Save on Auto Insurance Premiums
RATESDOTCA has advised policyholders to shop around for better deals to save on their auto insurance premiums. Auto insurance premiums can vary from provider to provider, and comparing premiums is the best way to ensure you’re getting the best option for your needs.
In conclusion, 2023 brings auto insurance premium hikes for Canadian drivers, with inflation and the need to maintain accident benefits driving the rate increases. Drivers in Ontario and Alberta can expect different outcomes, with higher premium increases in Ontario and lower but still significant increases in Alberta. To save on auto insurance premiums, policyholders should compare deals from different providers.