Canadian car insurance premiums deemed ‘excessively high’ as global stats revealed – Insurance Business Canada (blog)

by Lucy Hook

A recent survey has shone a light on the excessively high cost of car premiums in Canada, after it revealed that despite a 19% price increase in premiums in the UK, the cost of insuring a vehicle in Ontario remains significantly higher.

Comparison site
Confused.com
, which conducted the research, said an almost 20% rise in the cost of premiums had resulted in a new five-year high in the UK, with the average motorist now paying £715, equivalent to ,235 CAD – this is up from £600 just a year ago.

However, the average auto premium in Ontario, Canada’s most expensive market, is still over ,500 CAD – meaning that despite the significant price hike in the UK, Ontarians are still worse off.

Brokerage Shop Insurance Canada said that there should not be such a disparity in prices between the UK and Canada, and the government had more work to do.

“Even after a near 20% average increase, the UK remains cheaper than Ontario for car insurance,” the company said.

“The government has done a lot by reducing auto insurance premiums by 10% in the province, but still Ontario remains excessively high. It is worth noting that the UK is a similar market model to Ontario, the differences between the two should not be as drastic as the average price suggests,” it said.

Confused.com
said in a release that insurance price increases, coupled with rising petrol prices and insurance premium taxes, could signal the end of the road for cheaper driving for motorists in the UK.

The results found that surprisingly it was older drivers, rather than their younger counterparts, who had been hit the hardest by rising premiums.

Drivers over 61 saw their premiums increase by 24% on average, compared to 8% for 17-year-olds.

What do you think of car insurance premiums in Ontario and across Canada? Are they justifiable? Leave a comment below with your thoughts.

Related stories:

Broker questions how auto thefts are rising

Minister responsible for auto insurance charged with impaired driving

IBC applauds Ontario government’s focus on auto insurance reforms – Canadian Underwriter

The Insurance Bureau of Canada (IBC) is applauding the Government of Ontario for “continuing to make auto insurance reforms a priority†as the government released mid-point mandate letters for all Cabinet Ministers.

Auto insurance claim formOne of the key items in Minister of Finance Charles Sousa’s mandate letter is to continue to work with Ontario’s Advisor on Auto Insurance to build upon the nearly 10% auto insurance rate reduction since August 2013 and to pass additional savings on to Ontario consumers, IBC said in a statement on Friday, the same day the mandate letters were released. Advice to government should be received by the end of 2016, the letter added.

In addition, Premier Kathleen Wynne has asked the Minister of Infrastructure to work with the Minister of the Environment and Climate Change to make improvements to the capital planning process. “This is an important step in building more resilient infrastructure that can better withstand the impacts of climate change – a key priority for many of Canada’s insurance and reinsurance companies,†IBC said in the statement.

Among the items in the letter to the Minister of Infrastructure, Bob Chiarelli, is developing and initiating a program in 2017 to reduce greenhouse gas emissions from heritage properties; working with the Minister of Research, Innovation and Science to “develop a program to demonstrate low carbon technologies using government assetsâ€; incorporating climate change into existing and future municipal funding programs; and working with the president of the Treasury Board to develop an approach to make the Ontario government carbon neutral by 2018.

In addition to auto insurance reforms, IBC will continue to work with the government on fighting auto insurance fraud and on implementing changes to the Financial Services Review Commission “to better help the insurance industry serve Ontarians,†the release said.

The provincial government originally indicated in their 2013-14 budget that they would reduce auto premiums by 15% over two years. Then, effective June 1, benefits and coverages in a standard auto insurance policy changed – some were reduced, and some options for increased coverage were eliminated or changed. For example, medical and rehabilitation for non-catastrophic injuries and attendant care for non-catastrophic injuries were combined and reduced to ,000 in total from ,000 and ,000, respectively. And medical and rehabilitation for catastrophic injuries and attendant care for catastrophic injuries were combined and reduced to million in total, from million each previously.

“The government’s continued focus on auto insurance reforms builds on the progress already made and shows a strong commitment to helping Ontarians keep more of their hard-earned money for other household priorities,†said Don Forgeron, president and CEO of IBC, in the release. “Insurers look forward to continuing to work with Premier Wynne, her government, and all MPPs to best serve the consumers of this province while making their lives more affordable.â€

What newcomers need to know about buying auto insurance in … – canadianimmigrant.ca

buick car stockYou have your eye on a new set of wheels and the price is right, but don’t forget there are additional costs involved when it comes to owning a vehicle — most significantly, auto insurance.

In Canada, if you own a car, you must have insurance coverage.

However, shopping for auto insurance can be daunting for newcomers to Canada. There are a variety of insurance providers to choose from depending on your province, and many types of car insurance plans. Although each province will have a minimum level of insurance you are required to have to protect you and other drivers on the road in the case of an accident, there are also optional coverages you can choose to increase your insurance safety net.

Types of insurance

Here is an overview of types of insurance.

Liability coverage protects you if you are in an accident and you’re held legally liable for property damage, injury or death to other people. This coverage is mandatory in Canada, although the minimum amount may vary per province. Liability insurance in Canada also includes coverage to protect you against financial losses you might suffer due to medical expenses or loss of income if you’re injured. This portion of insurance coverage is referred to as “accident benefits.”

Collision coverage covers the damage that can affect your vehicle as a consequence of a crash with another vehicle or object, even if you’re at fault.

Comprehensive coverage insures your car against other types of damage such as vandalism — slashed tires and keying to name just two examples! — theft, fire or flood, and so on.

Loss of use covers your transportation costs (such as a rental car) during the time your vehicle is being repaired or replaced.

 

Cost of car insurance

Depending on what insurance options you choose, the cost of your car insurance can vary widely. Plus, there are several other variables that can affect the price you pay, including:

 

Your age

The younger you are, the higher your insurance costs will likely be, because younger, more inexperienced drivers will pose a higher risk for accidents. Many insurance providers will offer special road safety discounts after a few years of safe driving.

 

Driving record
It’s not just about your age; your record behind the wheel can also impact how much you pay. Insurance providers will look at the number of years you have been licensed and whether or not you have experienced any traffic violations and at-fault collisions during that time. If you have a clean driving record, your premium is going to be lower than if you have experienced a conviction or accident.

 

Type of car

Even your type of vehicle can affect the cost of your insurance. It’s common sense that newer vehicles will have higher insurance costs than an older vehicle, because the cost of repair or replacement will be higher in the case of an accident. But even the style and colour of your car can impact your final costs; a flashy red sports car with high stealing rates will likely bring with it higher insurance premiums than a family-friendly vehicle with a high safety rating.

 

How much you drive

How often and how far you drive factor into the cost of car insurance as well. The logic here is simple: the more hours you spend driving, the higher the chance that you will be in a collision. So, if you work near your home, chances are you will pay much less for car insurance compared to someone who commutes to work an hour a day, each way.

 

Deductible

The amount of your deductible can also impact your overall insurance costs. Generally, the higher your deductible, the lower your insurance rates.

 

Insurance provider

Generally, auto insurance costs can vary between insurance companies, so it’s a good idea to shop around. Contact a few companies for quotes on their insurance plans before you buy. Some provinces like B.C., Saskatchewan, Manitoba and Quebec have crown corporations serving as the main insurance provider, so comparison shopping is limited in those provinces, although it is possible to get basic coverage through the main provider, but additional coverage through a private insurer.



IBC applauds Ontario government’s focus on auto insurance reforms – Canadian Underwriter

The Insurance Bureau of Canada (IBC) is applauding the Government of Ontario for “continuing to make auto insurance reforms a priority†as the government released mid-point mandate letters for all Cabinet Ministers.

Auto insurance claim formOne of the key items in Minister of Finance Charles Sousa’s mandate letter is to continue to work with Ontario’s Advisor on Auto Insurance to build upon the nearly 10% auto insurance rate reduction since August 2013 and to pass additional savings on to Ontario consumers, IBC said in a statement on Friday, the same day the mandate letters were released. Advice to government should be received by the end of 2016, the letter added.

In addition, Premier Kathleen Wynne has asked the Minister of Infrastructure to work with the Minister of the Environment and Climate Change to make improvements to the capital planning process. “This is an important step in building more resilient infrastructure that can better withstand the impacts of climate change – a key priority for many of Canada’s insurance and reinsurance companies,†IBC said in the statement.

Among the items in the letter to the Minister of Infrastructure, Bob Chiarelli, is developing and initiating a program in 2017 to reduce greenhouse gas emissions from heritage properties; working with the Minister of Research, Innovation and Science to “develop a program to demonstrate low carbon technologies using government assetsâ€; incorporating climate change into existing and future municipal funding programs; and working with the president of the Treasury Board to develop an approach to make the Ontario government carbon neutral by 2018.

In addition to auto insurance reforms, IBC will continue to work with the government on fighting auto insurance fraud and on implementing changes to the Financial Services Review Commission “to better help the insurance industry serve Ontarians,†the release said.

The provincial government originally indicated in their 2013-14 budget that they would reduce auto premiums by 15% over two years. Then, effective June 1, benefits and coverages in a standard auto insurance policy changed – some were reduced, and some options for increased coverage were eliminated or changed. For example, medical and rehabilitation for non-catastrophic injuries and attendant care for non-catastrophic injuries were combined and reduced to ,000 in total from ,000 and ,000, respectively. And medical and rehabilitation for catastrophic injuries and attendant care for catastrophic injuries were combined and reduced to million in total, from million each previously.

“The government’s continued focus on auto insurance reforms builds on the progress already made and shows a strong commitment to helping Ontarians keep more of their hard-earned money for other household priorities,†said Don Forgeron, president and CEO of IBC, in the release. “Insurers look forward to continuing to work with Premier Wynne, her government, and all MPPs to best serve the consumers of this province while making their lives more affordable.â€

Morning Briefing: Auto insurance report is flawed says PCI – Insurance Business America

Auto insurance report is flawed says PCI

A report by the Consumer Federation of America regarding auto insurance ratings is flawed as it does not compare like with like.

That’s according to the Property Casualty Insurers Association of America which highlights the large choice that consumers

have in the market and that they are able to shop around to get better deals if they aren’t happy with the premium quoted by their insurer.

In a statement, PCI vice president of policy development and research David Snyder says:

“The CFA’s latest study on auto insurance pricing is flawed and misleading. The central flaw in the report is that it fails to take into account that all the rating and underwriting factors insurers use are proven to increase the accuracy of predicting the risk of loss.”

He added that “without an ‘apples to apples’ comparison it is impossible to isolate the impact of individual factors as the CFA attempts to do by singling out a driver with a driving under the influence conviction. A component of one profile indicated that the driver went six months without insurance, which is a significant factor in predicting risk.”

Mr Snyder also pointed out that the rating factors are closely regulated and are based on predicted losses rather than the “social economic” metrics that have been suggested.

 

Healthcare liability claims moderately lower

Professional liability claims in the healthcare sector have continued to see a moderate decrease.

Data from Aon Risk Solutions shows that there was a 1 per cent annual reduction in claims in its 2016 report produced in association with the American Society for Healthcare Risk Management.

“Risk Managers and Insurance Underwriters seek to find data that describes the general safety environment for a given hospital facility” said Dominic Colaizzo, Chairman of Aon’s National Health Care Practice.

“We found that there is, in fact, a correlation between patient safety and worker safety. Health care systems should be encouraged to know that investments in their general safety environment benefit both workers and patients,” he added.

Those facilities with better Total Performance Scores (as measured by the Centers for Medical & Medicaid Services) tend to have lower frequency of professional liability claims.

Projected loss rate for hospital professional liability is ,620 per occupied bed equivalent (OBE) for events occurring in 2017. The frequency of claims is projected to be 1.55 per 100 OBE and the severity of claims is expected to be 9,000 per claim.

 

Economical Insurance donates ,000 for prostate cancer awareness

Economical Insurance has donated ,000 to help raise awareness of prostate cancer in Atlantic Canada.

The insurer is sponsoring the Wake Up Call Breakfast events organized by Prostate Cancer Canada this week.

“We want to help men over 40 understand that their best chance of surviving prostate cancer is early detection,” said Karen Kaminska, Regional Vice-President, Sales and Distribution, Atlantic Canada for Economical Insurance.

 

What newcomers need to know about buying auto insurance in … – canadianimmigrant.ca

buick car stockYou have your eye on a new set of wheels and the price is right, but don’t forget there are additional costs involved when it comes to owning a vehicle — most significantly, auto insurance.

In Canada, if you own a car, you must have insurance coverage.

However, shopping for auto insurance can be daunting for newcomers to Canada. There are a variety of insurance providers to choose from depending on your province, and many types of car insurance plans. Although each province will have a minimum level of insurance you are required to have to protect you and other drivers on the road in the case of an accident, there are also optional coverages you can choose to increase your insurance safety net.

Types of insurance

Here is an overview of types of insurance.

Liability coverage protects you if you are in an accident and you’re held legally liable for property damage, injury or death to other people. This coverage is mandatory in Canada, although the minimum amount may vary per province. Liability insurance in Canada also includes coverage to protect you against financial losses you might suffer due to medical expenses or loss of income if you’re injured. This portion of insurance coverage is referred to as “accident benefits.”

Collision coverage covers the damage that can affect your vehicle as a consequence of a crash with another vehicle or object, even if you’re at fault.

Comprehensive coverage insures your car against other types of damage such as vandalism — slashed tires and keying to name just two examples! — theft, fire or flood, and so on.

Loss of use covers your transportation costs (such as a rental car) during the time your vehicle is being repaired or replaced.

 

Cost of car insurance

Depending on what insurance options you choose, the cost of your car insurance can vary widely. Plus, there are several other variables that can affect the price you pay, including:

 

Your age

The younger you are, the higher your insurance costs will likely be, because younger, more inexperienced drivers will pose a higher risk for accidents. Many insurance providers will offer special road safety discounts after a few years of safe driving.

 

Driving record
It’s not just about your age; your record behind the wheel can also impact how much you pay. Insurance providers will look at the number of years you have been licensed and whether or not you have experienced any traffic violations and at-fault collisions during that time. If you have a clean driving record, your premium is going to be lower than if you have experienced a conviction or accident.

 

Type of car

Even your type of vehicle can affect the cost of your insurance. It’s common sense that newer vehicles will have higher insurance costs than an older vehicle, because the cost of repair or replacement will be higher in the case of an accident. But even the style and colour of your car can impact your final costs; a flashy red sports car with high stealing rates will likely bring with it higher insurance premiums than a family-friendly vehicle with a high safety rating.

 

How much you drive

How often and how far you drive factor into the cost of car insurance as well. The logic here is simple: the more hours you spend driving, the higher the chance that you will be in a collision. So, if you work near your home, chances are you will pay much less for car insurance compared to someone who commutes to work an hour a day, each way.

 

Deductible

The amount of your deductible can also impact your overall insurance costs. Generally, the higher your deductible, the lower your insurance rates.

 

Insurance provider

Generally, auto insurance costs can vary between insurance companies, so it’s a good idea to shop around. Contact a few companies for quotes on their insurance plans before you buy. Some provinces like B.C., Saskatchewan, Manitoba and Quebec have crown corporations serving as the main insurance provider, so comparison shopping is limited in those provinces, although it is possible to get basic coverage through the main provider, but additional coverage through a private insurer.



Canadian car insurance premiums deemed ‘excessively high’ as global stats revealed – Insurance Business Canada (blog)

by Lucy Hook

A recent survey has shone a light on the excessively high cost of car premiums in Canada, after it revealed that despite a 19% price increase in premiums in the UK, the cost of insuring a vehicle in Ontario remains significantly higher.

Comparison site
Confused.com
, which conducted the research, said an almost 20% rise in the cost of premiums had resulted in a new five-year high in the UK, with the average motorist now paying £715, equivalent to ,235 CAD – this is up from £600 just a year ago.

However, the average auto premium in Ontario, Canada’s most expensive market, is still over ,500 CAD – meaning that despite the significant price hike in the UK, Ontarians are still worse off.

Brokerage Shop Insurance Canada said that there should not be such a disparity in prices between the UK and Canada, and the government had more work to do.

“Even after a near 20% average increase, the UK remains cheaper than Ontario for car insurance,” the company said.

“The government has done a lot by reducing auto insurance premiums by 10% in the province, but still Ontario remains excessively high. It is worth noting that the UK is a similar market model to Ontario, the differences between the two should not be as drastic as the average price suggests,” it said.

Confused.com
said in a release that insurance price increases, coupled with rising petrol prices and insurance premium taxes, could signal the end of the road for cheaper driving for motorists in the UK.

The results found that surprisingly it was older drivers, rather than their younger counterparts, who had been hit the hardest by rising premiums.

Drivers over 61 saw their premiums increase by 24% on average, compared to 8% for 17-year-olds.

What do you think of car insurance premiums in Ontario and across Canada? Are they justifiable? Leave a comment below with your thoughts.

Related stories:

Broker questions how auto thefts are rising

Minister responsible for auto insurance charged with impaired driving

Government of Canada Supports Pilot Project for New Farmer Credit Insurance Tool – Marketwired (press release)

FREDERICTON, NEW BRUNSWICK–(Marketwired – Sept. 23, 2016) - Agriculture and Agri-Food Canada

Member of Parliament for Tobique-Mactaquac, TJ Harvey on behalf of Agriculture and Agri-Food Minister Lawrence MacAulay announced today an investment of over 0,000 to support the Canadian Federation of Agriculture (CFA)’s efforts to introduce a new accounts receivable insurance tool.

CFA’s two-year pilot project addresses a gap in the agriculture sector for individual transaction accounts receivable insurance. The insurance tool is designed to offer financial protection to farmers as they seek out new markets within Canada and abroad. The intent is to develop private sector delivered, accounts receivable insurance for up to twenty agricultural commodities in Saskatchewan and Manitoba, with longer-term plans of expanding credit insurance across Canada to provide more certainty and ensure higher profitability.

Quick facts

  • Accounts Receivable insurance is a widely-recognized insurance product that protects a business from an unforeseeable non-payment of commercial debt.
  • The project has been funded under the Growing Forward 2, AgriRisk Initiatives (ARI) which supports the research, development and implementation of new risk management tools for use in the agriculture sector.
  • Growing Forward 2 is a five-year (2013-2018) policy framework for Canada’s agricultural and agri-food sector, representing a billion dollar investment by federal, provincial and territorial (FPT) governments and it is the foundation for government agricultural programs and services.

Quotes

“The Government of Canada is committed to working with industry and the private sector to explore tools that contribute to a resilient agriculture sector. This investment will help give farmers the confidence of guaranteed payment, which encourages them to take advantage of new sales opportunities to gain higher returns for their commodities and increase their profitability.”

  • Member of Parliament for Tobique-Mactaquac, TJ Harvey

“The Canadian Federation of Agriculture is pleased to undertake this project to develop tools that will improve the understanding of potential risks in agriculture and support the development of insurance protection for farmers in cases where a buyer doesn’t pay their bill. CFA will work with its associate member, Farmers of North America, to share the results of the project and extend these insurance offerings across Canada.”

  • Ron Bonnett, Canadian Federation of Agriculture President

Additional links

Growing Forward 2

Canadian Federation of Agriculture

Follow us on Twitter: @AAFC_Canada

Like us on Facebook: CanadianAgriculture

IBC applauds Ontario government’s focus on auto insurance reforms – Canadian Underwriter

The Insurance Bureau of Canada (IBC) is applauding the Government of Ontario for “continuing to make auto insurance reforms a priority†as the government released mid-point mandate letters for all Cabinet Ministers.

Auto insurance claim formOne of the key items in Minister of Finance Charles Sousa’s mandate letter is to continue to work with Ontario’s Advisor on Auto Insurance to build upon the nearly 10% auto insurance rate reduction since August 2013 and to pass additional savings on to Ontario consumers, IBC said in a statement on Friday, the same day the mandate letters were released. Advice to government should be received by the end of 2016, the letter added.

In addition, Premier Kathleen Wynne has asked the Minister of Infrastructure to work with the Minister of the Environment and Climate Change to make improvements to the capital planning process. “This is an important step in building more resilient infrastructure that can better withstand the impacts of climate change – a key priority for many of Canada’s insurance and reinsurance companies,†IBC said in the statement.

Among the items in the letter to the Minister of Infrastructure, Bob Chiarelli, is developing and initiating a program in 2017 to reduce greenhouse gas emissions from heritage properties; working with the Minister of Research, Innovation and Science to “develop a program to demonstrate low carbon technologies using government assetsâ€; incorporating climate change into existing and future municipal funding programs; and working with the president of the Treasury Board to develop an approach to make the Ontario government carbon neutral by 2018.

In addition to auto insurance reforms, IBC will continue to work with the government on fighting auto insurance fraud and on implementing changes to the Financial Services Review Commission “to better help the insurance industry serve Ontarians,†the release said.

The provincial government originally indicated in their 2013-14 budget that they would reduce auto premiums by 15% over two years. Then, effective June 1, benefits and coverages in a standard auto insurance policy changed – some were reduced, and some options for increased coverage were eliminated or changed. For example, medical and rehabilitation for non-catastrophic injuries and attendant care for non-catastrophic injuries were combined and reduced to ,000 in total from ,000 and ,000, respectively. And medical and rehabilitation for catastrophic injuries and attendant care for catastrophic injuries were combined and reduced to million in total, from million each previously.

“The government’s continued focus on auto insurance reforms builds on the progress already made and shows a strong commitment to helping Ontarians keep more of their hard-earned money for other household priorities,†said Don Forgeron, president and CEO of IBC, in the release. “Insurers look forward to continuing to work with Premier Wynne, her government, and all MPPs to best serve the consumers of this province while making their lives more affordable.â€

Shop Insurance Canada Looks Into Hold Up in CETA Agreement – PR Leap (press release)

Shop Insurance Canada Looks Into Hold Up in CETA Agreement

September 28, 2016   Business News

(PRLEAP.COM) The EU-Canada Comprehensive Economic and Trade Agreement (CETA) seems to be going through legal processes and could even be scrapped. While CETA is an all-encompassing freeing of trade relations between the EU and Canada, it was potentially important for the insurance industry. Shop Insurance Canada has written
a news report
on what the uncertainty around CETA means for the agreement’s future.

Canadian providers may have been placed in a more competitive industry as more European companies could have opened in the country. Of course, Canada is already home to some European-based insurance companies, RSA Canada and Aviva Canada being the most notable.

However, CETA is now up in the air because the European Union has decided to push the trade agreement to a committee to seek approval. The CETA agreement would see 9,000 existing tariffs on trade items lifted. This would include no tariff fees on agricultural and industrial items. The agreement will also make Canadian industries more competitive in financial sectors like banking and insurance.

The Union and Canada have been negotiating the CETA deal since 2009, but pushing it to another committee could mean it is close to being shut down. However, it could also be the final step to the agreement finally being signed. This is possible considering the European Union has said it wants the agreement to be closed by October.

Trade Commissioner Cecilia Malmström chose to submit the deal for approval to over 30 national and regional parliaments from the EU. He says the decision is bigger than the parliament and needs to be further debated.

While Europe has not said it, the decision for the UK to leave the EU (Brexit) must have impacted the finer details of CETA. The UK was a main force in pushing through the agreement with Canada, but the EU now sees the UK as a country looking for the way out. It is unlikely the UK’s influence will count for much.

If CETA collapses or even if its move forward, the UK is likely to maintain a strong position with Canada. The country is Canada’s biggest trading partner in Europe and that will likely continue. Canada’s national statistics agency says the UK traded over billion in Canada last year, far more than any other EU nation.



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Perhaps you have a funny story about your premium evaluations, or maybe a genuine worry about the state of insurance in Canada. Shop Insurance Canada wants your voice and story to be heard, so get in touch with us via our official contact page.



About Shop Insurance Canada

Shop Insurance Canada is a Toronto based company
that specializes in delivering the best auto insurance products to customers around Ontario and Canada. The online quoting tool uses an engine that is easy to use and accurate enough to deliver the best auto insurance quotes from over 25 of Canada’s leading providers. Shop Insurance Canada also offers expert advice on the auto insurance industry, as well as guides and news to help customers find the best deal possible.



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Contact Information

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Shop Insurance Canada

416-913-0151