Why is my auto rate increasing?
Automobile insurance rates continue to climb in 2024. This is a direct result of claims costs increasing significantly and the cost being spread over all policy holders in Ontario. Factors that are contributing to increased losses and claims payout include:
- Vehicle Theft is high: A vehicle is stolen every 6 minutes in Canada and costs roughly $1billion annually
- Supply Chain shortage: Garages don't have to capacity to repair the vehicles in timely manner: ONLY 9% OF COLLISION REPAIR SHOPS ARE ABLE TO SERVICE A DRIVABLE CLAIM WITHIN TWO WEEKS, AND 68% OF SHOPS HAVE INDICATED THAT IT WOULD TAKE TWO MONTHS OR LONGER TO SERVICE DRIVABLE CLAIMS.
- Vehicle parts take too long to source, so vehicles are being written off.
- Rental cars are needed longer due to length of time to repair, & the daily rental rate has increased. Both factors increase the expenses paid out: FOR LARGER, NON-DRIVABLE CLAIMS, 70% OF SHOPS HAVE INDICATED THAT THE WAIT TIME WILL BE AT LEAST TWO TO SEVEN MONTHS, WITH 67% OF SHOPS SIMPLY STATING THEY ARE “NOT TAKING NON-DRIVABLE CLAIMS AT THIS TIME,” AND 17% OF SHOPS ARE UNSURE IF THEY EVER WILL.
- Salaries and costs of parts have increased in keeping with inflation.
Automobile
To transfer a vehicle on my policy, what information must I provide my broker?
You will need to provide us with the following information:
- Bill of sale; which shows Year/Make/Model & VIN # of vehicle.
- The name of the person the vehicle will be registered to.
- Delivery date.
- New/Used/Demo - odometer reading on delivery.
- Leasing/Financing company Name & Address.
Property
What information must I provide my broker for an address change on my property policy?
You will need to provide us with the following information:
- New Address.
- Closing date of new home and, if applicable, of current home and date of the move.
- Completed Data Collection Form & Underwriting Questionnaire (click to download these attachments)
- Any new Mortgage company information.
- Real Estate Lawyer's information for closing of new home.
Finance
How can I pay for my Insurance Policy? Do I have to pay the full premium at once?
There are many ways to pay. Speak to us to determine the options specific to your policy.
- Single pay (full premium up front). Via cheque, bank transfer or credit card.
- Two, Three or Four payment plan; via cheque, bank transfer or credit card.
- Monthly payment plan (financing charge typically applied) - via bank withdrawal or credit card charge depending on the market you're with.
You can change your payment method or banking information if your situation changes. Please allow a minimum of 10 days’ notice, as not to interrupt your coverage.
Brokers
How do insurance brokerages get paid?
The insurance companies pay a commission when business is placed with them. The commission varies by type of policy. For example: automobile insurance policies are about 12% or less, whereas property policies can be as much as 20%. The average commission is 15%.
In addition, if a brokerage's loss ratio is below a certain threshold, the brokerage may receive a bonus.
What is the difference between a Broker & an Agent
An insurance broker is a licensed professional intermediary who acts on behalf of a client by negotiating with multiple insurers. The broker is independent and serves the clients' interests.
An insurance agent is an employee of the insurer and sells the insurance company's products to clients directly. The agent works for the insurer and serves the company's interests.