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Most everyone seems to have a general expectation that each year their insurance is going to go up. Some are surprised when their insurance goes down. Or become happy when it at least remains the same. There are some that figure their insurance is going to go up based on a few reasons. It is because there has been a claim and the insured figures this is going to cause an insurance increase.

When Are Insurance Increases Applied?


Most individuals take insurance out for a year. It is a year’s agreement made between them and the insurance company. Although this can vary at times with shorter durations. In general, every time the insurance is due for renewal there is a premiums review. If the premiums are going to go up, it will be at this time. There can be a lot of reasons why the premiums will increase.

Insurance Premiums from Collision Claims

One of the most significant and common claims are those for collisions. Sometimes insurance can be confusing. Individuals don’t understand if they were not at fault for an accident. They are not sure whether this can affect their insurance premiums. Then in Ontario with the no-fault insurance, this again leads to some misunderstandings. No-fault insurance means that insured deals with only their own insurance company. It won’t matter who was at fault for the specific collision. But, insurance companies must determine a percentage of fault. As it pertains to each one involved in the accident.

Generally speaking, if the insured is not found to be at fault, it should not have any impact on their premiums. So, they should not see an insurance increase because of a collision claim.

Premium Increases Due to Other Claims

There are several other types of claims that can increase the insurance. It can be claimed under comprehensive insurance coverage. It includes damage done as acts of nature. Or if a vehicle has become stolen.

Increase in Premiums Due to Change in Information

When it comes renewal time, the insurance is going to do a review of the insured. They are going to look at many different factors that could be affecting their premiums. One of the most important will be the information about the driver. They will look at the driver history and determine if there have been any changes. They will look for negative factors. This will include if any demerit points have accumulated. If there has been any tickets or Highway traffic act infractions. All these are going to play a role in the increase in the premiums.

Insurance companies also look at other metrics. Insurance Companies may look at statistics about a vehicle make and model. They may look to see if any metrics have changed. Even if the driver has the same vehicle.

Sometimes it takes a year or more to gather statistics. As they pertain to the different makes and models. Insurance companies could find that the metrics for these are unfavourable. These may play a factor in the insurance premium.

Premium Increases Due to the Insurance Company


The insurance company is in total control of how much they want to charge for their insurance. At times their costs go up over the year in general. They may consider the need to raise their insurance rates.  Insurance Companies can raise their rates in general. But they need approval by the Financial Services Commision of Ontario. These rates can increase as the FSCO sees fit. For example, in January the rates of insurance in Ontario are slated for an increase. This increase was to be 1.03%. Individuals that are up for renewal in 2018 could see an increase.  It may be reflected in their premiums. Even if nothing has changed in their information.

There are times where insurance rates do go on a decrease although not all that often.

Review Your Policy Renewal

It is a good idea that each year when an individual receives their renewed policy to review it. Look at the changes that are made.  Some may disagree with what is showing. If so, they should question their insurance company about this. Perhaps there is a rate increase. The insured doesn’t understand why.  They should question their insurance company about this. Insurance companies should give all the answers to any questions presented to them. In some cases, it may be that something has been misunderstood or it even could be a mistake. There may be information on the policy that’s outdated. Something the insured has forgotten to remove.  Maybe the insured didn’t notify the insurance company for a change. For example, there may be a second driver that’s listed that is no longer driving the vehicle. It is going to have an impact on the premiums.

Don’t Become Complacent About Your Insurance.


Sometimes individuals feel there’s nothing much that they can do about their premium increase. There are some steps to take. Depending on the circumstances that cause the increase. If it was due to personal changes, then not as much can be done about this.

It may be that the Insurance is making a general increase. There is nothing stopping the individual from shopping around

Insured shoppers should never think of that all insurance is the same. In Ontario alone, there is a lot of competition when it comes to insurance. This is driving insurance companies to be more competitive with the rates. Plus it is enticing them to offer more discounts. A savvy insurance shopper will be aware of these. They should seek out what the different insurance companies have to offer.

It doesn’t hurt at least once a year to do some insurance comparisons. With the advantage of the Internet and being able to access insurance quotes, this now becomes an easy task. These quotes are good for comparing with each other. It is another efficient way to insurance shop.

The lowest premiums are not always the best savings on insurance. Some companies are a little higher on their premiums. But offer good selections of discounts. These discounts could end up bringing the insurance premium lower. Perhaps even lower rates than what was first presented.

About the Author: Ashley Miller

Ashley is an insurance content professional and very knowledgeable on all related subjects. Ashley has over 12 years of insurance content writing experience working with various insurance companies throughout her career.