Auto insurance costs are influenced by many factors—some are specific to you (like your driving record) while some are due to our changing world, affecting all drivers—no matter who insures them.
What’s Behind the Rise in Premiums?
Here are some reasons for the recent rise in auto insurance claim costs1 in Ontario and how much drivers pay for their auto coverage:
According to the Insurance Bureau of Canada, distracted driving is now the cause of 8 out of 10 accidents. Not only are there more collisions, but these collisions are also more severe. This has contributed to an increase in both claims and premium costs.
Higher Repair Costs
With better technology in our cars, it’s also more expensive to repair them. Ten years ago, a minor accident might require a plastic replacement bumper. Today, bumpers on new vehicles are fitted with expensive sensors or cameras. It’s also taking longer to repair vehicles2 due to the complexity of repairs and a skilled labor shortage.
Auto Insurance Fraud
Fraud is a serious problem in Canada and unfortunately, it inflates your auto insurance premiums. According to the Insurance Bureau of Canada, auto insurance fraud costs Ontario drivers an estimated $1.6 billion each year.
How Can You Keep Your Costs Low?
- Drive carefully and distraction Free to help remain claims and conviction-free.
- Combine your home and auto insurance to receive additional discounts.
- Ask us about other discounts you may qualify for.
- Select a higher deductible, which could help offset an increase in premiums.
And, of course, do your part to help fight fraud!
What you can do to help fight fraud
Our insurance provider, Aviva Canada, is committed to fighting fraud and educating consumers. Here are a few tips for spotting red flags and avoiding becoming a victim of fraud.
- If you’re involved in an accident, call Aviva Canada at 1-866-692-84821-866-692-8482 as soon as possible.
- Know your rights when dealing with tow truck operators. Use a reputable tow truck service and have your vehicle towed to a secure location of your choice.
- Make sure you use a reputable repair shop for vehicle repairs.
- If you need medical treatment after an accident, do not take referrals from tow truck drivers or auto repair shops.
- Report insurance fraud by calling the Insurance Bureau of Canada’s (IBC) TIPS line at 1-877-IBC-TIPS or by submitting an anonymous tip.
Visit avivacanada.com/fightfraud for more information and tips.