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Here’s why insurance premiums are on the rise in Alberta!

If you’re currently shopping for home or car insurance, you can expect higher quotes from insurers than were offered previously in and around Edmonton. In fact, insurance companies nationwide are increasing their premiums! As professional insurance brokers, we’ve been monitoring the situation as it has progressed and have compiled some of the key reasons why right here in our blog! Keep reading to learn more!

Costlier home features necessitate higher premiums

Green homes are increasingly popular, but the greener a house is, the more it costs to insure. Solar panels, Energy Star windows and doors, and eco-friendly appliances significantly increase repair and replacement costs.

In addition, high-end features like pools and hot tubs are becoming more common, which further drives up replacement costs and increases the risk of liability claims.

Learn more about additional factors that can influence your home insurance premiums.

Finished basements don’t play nice with aging infrastructure

A finished basement can increase your living space, but it can also make costly mishaps more likely to occur. Sewer backups are becoming more frequent because of aging municipal infrastructure, and the materials used in modern finished basements are expensive to replace. This means insurers need to balance the increased risk of flooding with higher insurance premiums.

Home insurance claims are increasing

The extreme weather brought on by climate change is taking its toll on Canadians. According to the Insurance Bureau of Canada, insured losses reached $1.9 billion in 2018. The only years with more losses were those during which a major weather catastrophe occurred. As a result, Canadians are filing more claims than ever.

This means that many people lose access to claims-free discounts. Moreover, insurers paid out more in claims than they received from premiums in 2018, forcing them to increase their rates just to keep up.

Smart cars are driving up repair costs

Your car’s driver assistance features extend beyond its on-board computer. For instance, bumper sensors and windshield cameras need to be replaced and recalibrated when either of these components is damaged. High-tech components are pricier and make repairs slower, which results in higher repair bills.

Crashes are more common

Distracted driving is on the rise and Transport Canada is citing the use of electronic devices as the leading cause of crashes related to distractions. To make matters worse, severe weather events are making roads more dangerous, further increasing the likelihood of accidents. The bottom line is that accidents are becoming more common, which is resulting in more expensive repairs and more insurance claims. Protect yourself and learn more about what exactly constitutes as distracted driving in Alberta.

Speak With an Insurance Broker in Edmonton to Find the Best Quote!

The best way to navigate these changes is to work with a local broker who can help you articulate your needs and find the best option for you. Whether you need home insurance or car insurance, the team at Edmonton’s MBS Insurance Brokers can help you choose the right policy at the best rate available.

Contact us today to get a free quote or set up an appointment!

How an Insurance Broker Saves You Time and Money

Do you know the benefits of an insurance broker?

Suppose you’re looking for the best insurance coverage at the best rates in Edmonton. In that case, you’ll first want to understand the benefits of an insurance broker and how they can help protect you in all sorts of different situations – whether it be saving you money, time or giving you simple peace of mind.

What Are the Benefits of an Insurance Broker?

Here are some of the many benefits of an insurance broker.

 

1. Saves Time

An insurance broker does all the work for you, so you don’t have to spend your valuable time shopping around for insurance. Instead, you simply provide your broker with information about your needs, and they shop the markets on your behalf.

 

2. Saves Money

Insurance brokers work with many different partners to find the best deals on the insurance that works for you. They take all your needs into account and make recommendations that are in your best interest. They have relationships with many insurance partners and can negotiate competitive rates and discounts, saving you money in the long run.

3. Expert Knowledge and Advice

An insurance broker provides you with the support and expertise you need to find coverage that suits your needs. They work with various products and services to find the coverage that best suits you. In addition, they can draw from an extensive knowledge base and experience to advise you on the best options. 

Insurance Brokers provide expert and unbiased advice. A wealth of knowledge about coverage and market rates combined with expert risk assessment ensures your possessions and business are adequately protected. Whether you are looking into auto insurance rates, tenant insurance, or home insurance rates, your insurance broker can help you every step of the way.

You can utilize their expertise to quickly identify your options and rely on their unbiased advice to help you make the best-informed decision for your situation.

 

4. Working For Your Best Interests

Since insurance brokers do not work with one particular company, they have nothing to gain from recommending a specific product. The insurance company also pays them a standard commission. Thus, there is no financial incentive to choose one insurer over another.

Insurance brokers have your best interests in mind. You can count on them to find you the best rate possible, which can give you the peace of mind you need. You can rest assured knowing that if you ever need to file a claim, one of our brokers will be there by your side to guide you every step of the way. They act as an advisor on insurance-related matters. They will shop the market for the best coverage and rates for you. Since fulfilling your needs is their only priority, they will provide independent, unbiased advice on the right coverage for your situation.

5. Privileged access and rates

Insurance Brokers have access to a wide selection of the best insurance companies in the country. These insurance companies are only accessible by Insurance Brokers. They do not deal with the public directly or with Direct Writers. Brokers enjoy long-standing relationships with these insurance companies. Still, they do not have an affiliation with any specific insurer, enabling brokers to provide you with a broader range of options at competitive rates.

 

6. Transparency

Insurance brokers must give full disclosure about their compensation and its effect on your insurance premium.  They are also required to declare any financial links with specific companies that may be a conflict of interest, enabling you to make the best-informed decision.

 

7. Risk and Advocacy Experience

Extensive experience dealing with different clients and claim situations equips insurance brokers with a broader perspective on how to reduce your risk. Also, in the event of a claim, you can count on your broker to act as your advocate with the insurance company and handle your claim fairly and promptly.

Speak to MBS Insurance in Edmonton about your Coverage

Reach out to MBS Insurance today to determine your home, auto, and commercial coverage options. Over the past 45 years, our experienced team of insurance brokers in Edmonton has earned the trust and loyalty of our clients by delivering superior products and services. We understand your needs and provide you with the best protection and rates.

There are many benefits of an insurance broker. We can help you understand the intricacies of your insurance plan while saving you money at the same time. We are a trusted insurance provider in Edmonton and provide personal and commercial insurance policies to people living in Alberta. We offer the best rates on recreational, auto, property, commercial, and group insurance policies. 

Contact us online for a free quote or by phone at 780-436-7880.

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This article was originally published on October 7, 2016, and updated for 2021.