Insuring your car is getting more and more expensive. And you can’t help it. But you have options to limit some financial damage.
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A reader writes to us that she is shopping for the renewal of her car insurance.
“I have a 2017 Hyundai Elantra bought new and I only have 51,000 km on the clock,” she wrote. My husband is the main driver and he commutes daily to work (8 km round trip). We drive between 8000 and 9000 km per year. »
Our reader and her husband, both 59, have been insured with the same company for three years. The last complaint they made was on their front bumper and was over 15 years ago.
Usually Madame takes an annual raise of about $50. But, this year, it’s $168. Asked to explain himself, his insurer replies that: “Everything is increasing, there is nothing we can do about it”.
An answer she does not accept.
Unfortunately…
Unfortunately for her (and for us), the insurer is not wrong.
The cost of insurance usually depends on customer criteria. The brand, the model, the age of the vehicle, the sex, the age, the experience of claims of the driver, the places of residence and use of the vehicle, the type of protection, the amount of the deductible…
Always bigger
But some factors influencing the price are, however, beyond the control of the insurer. The combination of climate change, inflation and several other factors has created a perfect storm for insurers and their customers.
Vehicles are getting bigger and equipped with a host of gadgets that inflate the cost of repairs. Lidars, cameras, sensors, ABS brakes, air bags, assisted driving or seat belt restriction systems, heated and swiveling mirrors are often the norm.
A popular model bumper cost between $500 and $600 (parts and labor) ten years ago. Today it is over $1000. Replacing a Toyota Corolla headlight can cost $2,000. For some vehicles, it goes up to $6,000!
As a result, the average auto insurance premium has gone from $536 in 2011 to $775 in 2021 in Quebec. The average cost of claims (what the insurer pays when it repairs your car) went from $3882 in 2011 to $5918 for the same period! While the number of claims increased by 3.4%, repair costs jumped by 11.2%, according to HelloSafe.
“Auto insurance premiums fell for 10 years until 2015,” explains Anne Morin, spokesperson for the Insurance Bureau of Canada (IBC). We are once again in a bullish cycle in auto insurance prices. »
Advice
- Shop. Ask at least three insurers. Do business with a broker who already deals with many insurers. We always end up finding cheaper.
- Going from a deductible (amount assumed by the insured in the event of a claim) from $50 to $500 often makes a big difference in premiums.
- Is your car getting old? Reviewing your needs or installing a telematics spy in your car or on your phone may save you money. Discuss this with your broker or insurer.
- A bad credit report will result in lower rates.
