We get it – it’s confusing when your premium changes at renewal, especially when nothing’s changed on your end. But renewal rates depend on both your personal history and wider industry trends that you can’t control. Let’s take a closer look:
Factors that affect auto renewal rates:
At-fault collisions: After an at-fault accident, insurers may re-evaluate you as a higher-risk driver, which can lead to a premium increase. Keep a clean record and you could restore a lower rate.
Tip: Adding accident forgiveness to your policy can protect you from a premium hike after your first at-fault collision.
Tickets and traffic violations: Speeding tickets and other traffic violations go on your driving record and can raise your insurance price. The more serious the violation, the bigger the impact.
Inflation and supply chain issues: Supply shortages, shipping delays and added costs like tariffs make it hard for repair shops to get the parts they need. And if inflation goes up, so does the cost of your car parts.
Growing repair costs: Today’s cars are full of sensors and safety features like adaptive cruise control and blind‑spot monitoring. They help keep you safe, but when they’re damaged, the repairs are more complex and more expensive.
Rising car theft: If you drive a vehicle that's highly sought after by thieves, it'll likely cost more to insure. Why? Because there’s a higher chance you’ll need to file a car theft claim.
Increasing auto insurance fraud: Insurance fraud is way more common these days – especially staged car crashes. These false claims increase costs across the industry, and can impact your rate too.
Factors that affect home renewal rates:
Home insurance claims: Every time you make a claim, there’s a chance your premium will increase. Consider adding first‑claim forgiveness to your home or condo policy – it means your first property claim is waived, so it doesn’t impact your rate.
Renovations and home improvements: Upgrades like adding a pool or finishing your basement can increase your home’s value – and its replacement cost.
Rising costs to build and repair: Construction materials and labour continue to get more expensive, making it pricier to fix or rebuild your home.
Extreme weather events: Severe wildfires, floods and storms are becoming more common and causing record-breaking losses across the country. This usually means higher premiums for everyone.
New trends in your area: Your area may have become more prone to things like theft and vandalism, or environmental risks like flooding. Even aging local infrastructure, like older sewer systems, could play a role in your premium.
General rate changes: Sometimes insurers adjust their rates due to broader market trends, which can impact your premium even if nothing’s changed for you.
This list doesn’t cover everything that can impact your home or auto renewal, but it highlights some of the big ones. And remember – not everything that affects your premium is something you can change.