{"id":16167,"date":"2019-07-30T14:17:56","date_gmt":"2019-07-30T18:17:56","guid":{"rendered":"https:\/\/www.insurance-canada.ca\/?p=59682"},"modified":"2019-07-30T14:17:56","modified_gmt":"2019-07-30T18:17:56","slug":"high-loss-ratios-keeping-auto-insurance-expensive-across-canada","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2019\/07\/30\/high-loss-ratios-keeping-auto-insurance-expensive-across-canada\/","title":{"rendered":"High Loss Ratios Keeping Auto Insurance Expensive Across Canada"},"content":{"rendered":"\n
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Prices in Alberta see most severe increases as insurance companies grapple with rising claims costs<\/h3>\n

Toronto, ON (July 30, 2019) \u2013 LowestRates.ca<\/a>, an online comparison site for personal finance products like insurance, mortgages, loans and credit cards, has released its Q2 2019 Auto Insurance Price Index<\/strong>, which uses proprietary data to track the average cost of car insurance in Canada each quarter.<\/p>\n

The report found rates are up across Ontario, Alberta, and Atlantic Canada in the second quarter of 2019, with drivers in Alberta seeing the steepest increase in the country\u2014rates there rose 16.20% in the past year.<\/p>\n

In Atlantic Canada<\/span>, rates have seen the least severe increase, up 13.29%, while in Ontario<\/span> the average cost of auto insurance is up 13.85%.<\/p>\n

\u201cInsurance companies across Canada are fighting high loss ratios,\u201d explains Justin Thouin, CEO and Co-Founder of LowestRates.ca. \u201cWe have been hearing from many of our partners that in some areas, they\u2019re paying out more money in claims than they are taking in from premiums. This has led some companies to stop offering new insurance policies, which has led to a drop in competition and higher prices for Canadians.\u201d<\/p>\n

The Financial Services Commission of Ontario (FSCO), which regulates insurance rates across Canada, has highlighted several factors that have raised the values of claims nationwide, including distracted driving accidents and the high costs associated with fixing modern cars, which feature a variety of sensors, touch screens and advanced technologies.
Additionally, provincial government caps on insurance pricing have contributed significantly to the high loss ratios being experienced across the industry, particularly in Alberta. \u201cOur Alberta price index has now hit record highs for three straight quarters, and the Insurance Brokers Association of Alberta has publicly said that auto insurance in the province is in crisis,\u201d says Thouin. \u201cThey want government intervention to address this unsustainable situation.\u201d<\/p>\n

Breakdown in auto insurance price changes by sex:<\/span><\/p>\n

In Ontario,<\/span><\/p>\n