Why did my auto premium go up?

We understand that news of your auto insurance premium going up is never good news, so we wanted to shed some light on why this might happen. It’s important to us, as an insurance company, to be transparent about a topic like this. There are plenty of factors to be considered (that aren’t always obvious), including things like government regulators, trends in your area, the make/model of your car, and more. Often, what makes your price go up can be out of your control, however there are some things you actually can control – but we’ll let Rob explain.

Open Auto Rate Increase with Rob text transcript

So, to sum it up, here are 4 things you need to know about auto rate increases:

1 What is an auto rate increase?

  • Auto premiums can increase because of claims, traffic violations or even inflation (darned inflation!). As auto repair and equipment costs increase, this can impact your auto insurance premium.
  • Even if the vehicle you drive hasn’t changed, where you keep the vehicle hasn’t changed, or your driving record is still clean as a whistle… your auto insurance premium can still increase.

2 Who plays a role in setting rates?

Government regulators play a big role; they make sure we’re charging fair rates and that we’re able to pay out a claim if a customer needs. Here’s how:

  • The federal government monitors insurance companies to ensure they can cover the potential claims costs for every insurance policy they have sold.
  • Regulators oversee how insurance companies assess potential risk, determine prices and handle claims.
  • Provinces and territories determine what factors insurers can and can’t use when setting auto insurance rates (for example: age and gender) and also how they can be used. Keep in mind, each province will be different.
  • Insurers must have their “rating rules” approved by regulators and must get government approval every time they want to change their rates.

3 Why do rates increase?

Our rate increases come from predictive analytics, so we are covering the likelihood that your risk will have a claim in the future. But there are some reasons your rate increases that you can control vs. you can’t:


  1. Your driving history
  2. Your insurance history
  3. Where you live
  4. The type of vehicle you drive
  5. How much you use your vehicle


  1. Your driving history
  2. Your insurance history
  3. Where you live
  4. The type of vehicle you drive
  5. How much you use your vehicle

4 What can you do if your auto insurance premium goes up?

Try looking for savings elsewhere, such as:

  • Bundling your home and auto policies.
  • Carry a higher deductible so that your premium, in turn, goes down (we only recommend doing this if you can afford it).
  • Make sure the usage details of your car are accurate (for example, maybe you’ve moved closer to your office and your commute isn’t as long).
  • Shop around and compare rates.

We think it’s important to be honest about these topics, and hopefully this helped clear some things up! If you have any questions, you can always reach out to us as we are here to help.

Coverage your car’s always wanted at a competitive price.