Can Your Car Insurance Go Up with a Clean Driving Record?
Your driving record is clean. You’ve never caused an accident or had a speeding ticket. You might be wondering why your car insurance premium has gone up.
While it may seem unjustified, there are factors that influence car insurance premiums beyond your driving history.
What affects Canadian car insurance rates?
Even with a clean driving record, your car insurance premium can rise due to market factors.
Why car insurance premiums can go up:
Industry-wide rate increases
Factors such as increased claim costs, inflation, and rising vehicle repair costs can lead to higher premiums for all drivers.
Increased claims in your area
If your region experiences a rise in claims due to theft, accidents, or severe weather events, insurance companies may raise rates to offset the higher payout risks.
Changes in insurance regulations
Provincial governments regulate insurance rates, and changes in regulations or caps on premium increases can lead to periodic adjustments.
Inflation and repair costs
As the use of technology increases in vehicles, the cost of repairs and replacement parts continues to rise, which can cause insurance companies to adjust premiums accordingly.
How insurance brokers help you save money
While rising insurance rates can be frustrating, working with an insurance broker can help you find the best deal. Brokers compare quotes from multiple providers across Canada to ensure you get the most competitive rate available.
The Takeaway: Even if you maintain a clean driving record, outside factors can still influence your car insurance premium, but working with your insurance provider can help ensure that you’re getting the best possible rate.
Understanding all of the factors above can help you make informed decisions when renewing your car insurance policy. By working with an insurance broker, you can access competitive quotes, find the best coverage for your needs, and potentially save money in the process.
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Western Coast Insurance Services Ltd. is a wholly-owned division of Western Financial Group Ltd. Insurance products are underwritten by certain licensed insurance companies and are only available throughout British Columbia, Canada.