���߲ݴ�ý

Meanwhile, Ontario home insurance premiums grew 10.4 per cent in the fourth quarter of 2024, compared to the same period in 2023.

What’s driving the increase?

Daniel Ivans, an insurance expert and licensed insurance broker with , said three main factors are driving these increases.

The first factor is inflation. Inflationary increases are driving higher collision repair costs, for example.

“You see increases in the cost of living, the cost of labour and materials. As these costs increase, so do payouts,” Ivans noted.

Auto theft continues to drive up premiums. Ivans noted 2023 was a record year for auto theft with $1.5 billion in claims paid, according to the .

“This is a stark increase from 2018 when we saw closer to $500 million. These increased costs in general are going to lead to increases in premiums,” Ivans said.

Climate change is third factor driving up premiums.

Ivans noted back in 2020, the Insurance Institute of Canada (IIC) estimated claim payouts since the 1980s were doubling every five to 10 years due to climate change impacts like wildfires, flooding, hail and windstorms.

It was also in 2020 that the ICC anticipated payouts linked to climate change would increase to $5 billion by 2030, compared to $2.1 billion in 2020.

But last year, the industry paid out over $8.5 billion in property damage claims across Canada, blowing past previous projections.

Ivans noted Ontario hasn’t been immune to extreme weather linked to climate change.

The July 2024 flash floods in Toronto resulted in nearly $1 billion in claims, for example. August 2024 flooding in the Greater Toronto resulted in claims totalling nearly $110 million.

How to save

While the amount you’ll pay for auto insurance can vary depending upon your age, gender, what you drive and where you live, Ivans said consumers have various options to lower their premiums.

Customers can take advantage of “multi-line” discounts by bundling home and auto insurance with the same provider. In some markets, customers can save up to 26 per cent.

You can also save through multi-vehicle discounts. If your spouse, parent or child has insurance with a different provider, switching everyone to the same company can net savings between 10 and 20 per cent.

Telematics usage-based insurance is another way to save. Telematics is a GPS device installed in your car or smartphone that transmits data about your driving habits to your insurer. While some may see this as an invasion of privacy, drivers could see substantial savings.

“Traditionally you’ll see instant savings of up to 10 per cent off — but based on your driving habits, you could see up to 30 per cent off at renewal,” Ivans noted.

Shop around

Perhaps most importantly, Ivans said drivers should shop around to get the best rates on home and auto coverage.

“Every year, one month before renewal, I’d recommend that every consumer shop around,” said Ivans. “I do the same myself.”