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.
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!