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Auto and property insurance rates are on the rise

Benson Kearley IFG helps customers navigate the complex insurance market

Insurance rates have been on the rise in recent years, affecting both auto and property insurance policies. Several factors contribute to the increase in premiums, and understanding these reasons can help individuals make informed decisions when it comes to their insurance needs.

At Benson Kearley IFG, a team of expert insurance brokers give you the best options by working with the best insurance companies across Ontario. Call today to find out how they can help meet both your personal and commercial insurance needs.

Auto insurance

One of the primary reasons for the increase in auto insurance rates is the increased complexity of newer vehicles. Modern cars are equipped with advanced technology, such as sensors, cameras and other safety features. While these advancements improve vehicle safety, they also make repairs more costly. As a result, insurance companies must factor in the higher costs of repairing or replacing damaged parts, leading to higher premiums.

Another factor contributing to the rising rates is the escalating labour costs at body shops. Skilled technicians and specialized equipment are required to repair the intricate systems found in today's vehicles. As body shop expenses increase, insurance companies adjust their rates accordingly to cover these additional costs.

Furthermore, the trend toward larger civil court awards to accident victims plays a role in rising auto insurance rates. Court judgments and settlements for accident-related claims have been increasing, leading to higher payouts by insurance companies. To compensate for these rising costs, insurers adjust their rates to maintain profitability.

Property insurance

Like auto insurance, property insurance rates have also experienced an upward trend. One significant reason for this increase is the rising costs of labour and materials for rebuilding properties. In an inflationary world, construction expenses have surged, making it more expensive to repair or rebuild damaged homes or structures. As a result, insurance companies adjust their rates to account for these elevated rebuilding costs.

Additionally, contents replacement costs have also risen, contributing to the increase in property insurance rates. Factors such as inflation, increased demand for certain items and fluctuations in the cost of goods impact the value of personal belongings. To ensure adequate coverage, insurers must adjust their rates to reflect the higher costs associated with replacing the contents of insured properties.

The magnitude of rate increases

The extent to which insurance rates have gone up can vary depending on several factors. On average, insurance rates have increased by approximately three to seven per cent across different insurance types. However, it is important to note that individual circumstances, such as driving history, claims history, property location and coverage limits, can influence the specific rate increase for each policyholder. Make sure to talk to an experienced insurance broker who can secure the best possible rate for you.

Types of insurance and considerations

Insurance coverage extends beyond just auto and property insurance. Personal insurance encompasses various categories, including auto, recreational, property (such as home, condo, tenants, and cottages) and recreational (such as motorcycles, ATVs, and watercraft). Different individuals have different insurance needs, so it is important to assess personal circumstances and determine the appropriate coverage required for each aspect of life.

Commercial insurance covers a wide range of businesses, including small to large enterprises in retail, office, manufacturing, wholesaling, trucking, contracting, and restaurants. Business owners must carefully consider the specific risks associated with their industry and select the appropriate commercial insurance policies to protect their assets, employees, and operations.

How Benson Kearley IFG helps customers navigate the insurance market

In a competitive insurance market, Benson Kearley IFG strives to provide a ‘measure of certainty in a dangerous and uncertain world’ for its customers. They offer dedicated Account Managers who take the time to understand clients' needs, both in their personal and business lives. By developing relationships with the top insurers in Canada, Benson Kearley IFG can assess the best fit of client and insurer for their insurance needs, ensuring comprehensive coverage and competitive premiums.

As well, Benson Kearley IFG acts as an advocate for their clients during the claim settlement process. This personalized service ensures that customers receive the support and guidance they need to navigate the complexities of insurance claims effectively.

Additional Considerations When Shopping for Auto Insurance

When shopping around for auto insurance, customers should be aware of a few key factors:

  • Taking advantage of "bundling" discounts can be beneficial.
  • Placing both auto and property insurance with the same insurer can lead to lower premiums, as insurers often provide discounts for bundling policies.
  • Consider applying for telematics programs offered by insurers.

Telematics involves using devices or smartphone apps to monitor driving habits. By opting into these programs, individuals can have their driving behaviour assessed, potentially leading to discounts based on their safe driving habits.

Rising auto and property insurance rates can be attributed to various factors such as increased complexity of vehicles, rising labour costs, larger court awards and inflationary trends. Understanding these factors helps individuals make informed decisions when it comes to their insurance needs.

Benson Kearley IFG aims to assist customers in navigating the competitive insurance market by providing personalized service, strong insurer relationships and advocacy during the claim settlement process.

Call today and speak to an experienced insurance broker who can provide invaluable information about all your insurance needs!