Opening up your mailbox can be a scary experience. Between the pile of flyers, free credit increases, charitable causes, and bills, it’s hard to know what you’re going to find among the pile of white and brown envelopes. Possibly one of the scariest things you can find? A letter from your insurance company telling you that your auto insurance rates have gone up.
But wait, didn’t those rates increase last year? It doesn’t feel like anything is different this year. Honestly, it feels like all you have to do is sneeze near your car for your auto insurance to increase. What happened between this year and last year that make such a difference?
While it can feel like insurance companies are just picking on the common driver, there is a method to the madness. Here are ten factors that are causing your insurance premiums to increase.
1. Small Incidents Can Spell Big Increases
Were you recently in a “small” accident? While your collision may not have caused severe damage, small things like replacing your bumper, or recalibrating your vehicle’s computer can be costly.
2. In Fact, the Severity of Incidents in Alberta is Getting Worse
In Alberta, claims for severe and serious injuries are on the rise, with the average cost per incident doubling since 2005.
3. Distracted Driving is the New Impaired Driving
Where once drinking and driving was the leading cause of accidents and death, this has been surpassed by the number of incidents caused by being distracted on the road.
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4. Smart Features Don’t Always Translate to Savings
It’s fantastic that advancements in vehicle technology are allowing you to avoid collisions, stop your vehicle before a collision, or even park your car for you. The downside is that these complex computers are expensive to repair.
5. Your Windshield is Getting Smarter Too
All of the new technology in your vehicle means that your windshields are more expensive to replace, and will require some recalibration of your car’s computer after an incident, leading to increased rates.
6. Unpredictable Weather is Keeping Things Interesting
We’ve had our share of rough weather in recent years, and the increasing frequency of weather related events like flooding and wildfires is making a dent in your premiums.
7. Postal Code Envy? Think Again.
Insurance rates are partially determined by where you live. Whether you live in an urban or rural area and the number of claims filed in your area are just two of the ways in which your rates are affected by where you live.
8. Insurance Fraud Hasn’t Gone Away
While it seems farfetched, accidents are being staged in order to submit fradulent claims, and some victims are exaggerating the extent of their injuries in order to seek a larger payment.
9. Alberta Leads the Country in Vehicle Thefts
About one in every 250 vehicles were stolen in Alberta in 2018, making Alberta the leader in automotive thefts and associated claims.
10. Medical Services Are Getting Expensive
Not only is the cost of fixing your vehicle going up, the cost of medical services like physiotherapy and chiropractors are on the rise.
While it can feel like insurance rates are going up just because insurance companies want to make more money, there are very real reasons why your premiums may be going up.
If you think that there has to be another reason for your increasing insurance rates, why not give us a call? At Northgate Insurance Centre, we’ve been helping Albertan’s get the best rates on their auto insurance for over 30 years. See the difference having a team of friendly experts makes in finding ways to lower your insurance rates.