Friday, November 22, 2024

High cost of auto insurance premiums

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Maria Gill
Maria Gill
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The cost of auto claims has skyrocketed in 2021. According to data compiled by the financial product comparison platform HelloSafe, although the number of claims increased by only 3.4%, repair costs increased by 11.2%.

Posted at 11:00 a.m.

Isabelle Dube

Isabelle Dube
Journalism

The average cost of claims increased from $4,149 to $4,461 between 2020 and 2021. In total, auto claims cost insurance companies nearly $2.2 billion.

HelloSafe analysts explain this increase by the ever-increasing cost of parts to be replaced in vehicles, especially in new car models with their multiple electronic components. The cost of replacing the damaged vehicle comes after the overall increase in the vehicle’s value. Added to this is a labor shortage that forces mechanics to raise wages.

installments up

Unsurprisingly, premiums increased in 2021. Quebecers had to pay an average of $43 more, as average car insurance premiums rose from $732 to $775. An increase of 5.87%.

Quebec residents expect to pay a higher premium in urban areas such as Montreal and Quebec. But this is not always the case. In Quebec, for example, the average premium is $754, in the Laurentians it goes up to $777, and on the North Shore it’s $800.

Better to own a car when you live in Bas-Saint-Laurent than Nord-du-Québec. The gap is large. We go from $623 to $1,217.

In western Montreal, prices saw the biggest rise from 2020 to 2021, an increase of 6.85%. The Nord-du-Québec region, with its highest premium, saw the smallest increase of 2.36%.

split, rip

Those who can choose prefer to have their damaged car repaired in Chaudière-Appalaches or on the outskirts of Montreal. These are the areas where repairs are the least expensive. On the other hand, Nord-du-Québec, Laval and West Montreal are more expensive than anywhere else in the province.

More disasters in Montreal

Most disasters occur especially in the most densely populated urban areas center and Eastern Montreal (11.9%), Laval District (9.76%), Western Montreal (9.71%), Quebec Urban Community (9.6%).

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In Nord-du-Québec (6.9%), Abitibi-Témiscamingue (7.5%) and Center-du-Québec (7.7%), there are much fewer.

Data taken from Auto Insurance Statistical Report for 2021 It is published by Groupement des assureurs auto (GAA) in Quebec.

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