Toll Free: 1.877.225.0446

Canadian auto and property insurance rates headed in opposite directions

According to the latest results from Applied Systems’ premium rate index, average personal auto premium rates in Canada decreased 2.6% in late 2020 compared to the same period in 2019. During the pandemic, rate decreases may have also been attributed to reflect the fact that fewer Canadians are on the roads as a result of government lockdowns to prevent the spread of COVID-19.

But not all areas of Canada saw auto insurance rate decreases. The report highlights: “Alberta and the Atlantic provinces experienced the most significant increase in premium rate change year-over-year for the fourth quarter in a row, at 8% and 2.6, respectively. Quebec experienced a modest increase of 1.6%, while Ontario saw premium rate change decrease [by 3.2%] year-over-year.”

In the personal property line, all provinces saw premiums increase by an average of 3.6% in 2020 Q4 versus 2019 Q4. From the third quarter of 2020 to the last quarter of 2020, rates increased by 2.8%.

“At the end of 2020 Q4, our data indicates that the market continued to harden as premium rates for personal property increased compared to 2019,” said Steve Whitelaw, vice president of industry and partner relations with Applied Systems. “Alternatively, the market for personal auto has softened, as premium rates decreased at year-end 2020 relative to 2019.”

Contact your insurance agent or broker if you have questions about your policy. To read the full report, visit:

https://www.canadianunderwriter.ca/insurance/canadian-auto-and-property-insurance-rates-headed-in-opposite-directions-1004203234/