Auto Insurance 101:

After many years of stability, automobile insurance rates have climbed in many parts of the country.

Why is this Happening?
It seems that that has been on a lot of people?s minds these days.
People keep on asking me why it seems like their insurance does not seem to reflect their good driving records.

Looking at my own driver history and type of car I drive I can honestly say that my rates seem a bit high to me too!

So why do rates keep increasing year after year?

I can explain it like this?

The amount you pay for your insurance is influenced by the following factors –

FRAUD
PERSONAL INJURY CLAIMS
PROPERTY LOSS

I know you are thinking to yourself that you have been a good driver and have not suffered a claim. The insurance company tries to keep rates as fair as possible but have to account for the total loss of the industry as a whole. As unfair as that seems it?s the only way insurance companies know how to stay a float.

What has the insurance industry done to try to control costs?

Insurance companies are concerned about the long-term affordability of auto insurance and support the following initiatives.
Promoting legislation to control insurance costs
Establishing Fee based Schedules for some medical procedures
Creating a standard invoice for all healthcare providers
Implementation of aggressive campaigns to reduce auto theft - making car theft devices as standard
Supporting the Canadian Coalition Against Fraud
Promote road safety awareness campaigns

What can I do to help control premiums?
While insurance companies are committed to keeping insurance affordable for everyone, there are some steps you can take to help.
Raise your deductible
Dropping your collision coverage on an older car
Package your car and home insurance together
Pick a car with a lower rating

If you want more information please contact your broker or:
The Insurance Bureau of Canada

Consumer information:

(416) 362-9528 or 1-800-387-2880

Information sourced for the Insurance Bureau of Canada, November 2001

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Why is this Happening? It seems that that has been on a lot of people?s minds these days. People keep on asking me why it seems like their insurance does not seem to reflect their good driving records. Looking at my own driver history and type of car I drive I can honestly say that my rates seem a bit high to me too! So why do rates keep increasing year after year? I can explain it like this? The amount you pay for your insurance is influenced by the following factors – FRAUD PERSONAL INJURY CLAIMS PROPERTY LOSS I know you are thinking to yourself that you have been a good driver and have not suffered a claim. The insurance company tries to keep rates as fair as possible but have to account for the total loss of the industry as a whole. As unfair as that seems it?s the only way insurance companies know how to stay a float.	What has the insurance industry done to try to control costs? Insurance companies are concerned about the long-term affordability of auto insurance and support the following initiatives. Promoting legislation to control insurance costs Establishing Fee based Schedules for some medical procedures Creating a standard invoice for all healthcare providers Implementation of aggressive campaigns to reduce auto theft - making car theft devices as standard Supporting the Canadian Coalition Against Fraud Promote road safety awareness campaigns	What can I do to help control premiums? While insurance companies are committed to keeping insurance affordable for everyone, there are some steps you can take to help. Raise your deductible Dropping your collision coverage on an older car Package your car and home insurance together Pick a car with a lower rating
		If you want more information please contact your broker or: The Insurance Bureau of Canada Consumer information: (416) 362-9528 or 1-800-387-2880