The cost of auto insurance premiums on the rise

The cost of car claims has seen a meteoric rise in 2021. According to data compiled by the financial product comparison platform HelloSafe, even though the number of claims was up only 3.4%, repair costs have increased by 11.2%.

Posted at 11:00 a.m.

Isabelle Dube

Isabelle Dube
The Press

The average cost of claims rose 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 a damaged vehicle also follows the overall increase in vehicle value. Added to this is the labor shortage which is forcing mechanics to raise wages.

Premiums up

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

Quebecers expect to pay a higher premium in urban areas like Montreal and Quebec. But this is not always the case. In Quebec, for example, the average premium is $754, while in the Laurentians it rises to $777, on the North Shore to $800.

It is better to own a vehicle when you live in Bas-Saint-Laurent than in Nord-du-Québec. The gap is big. We go from $623 to $1217.

It is in the west of Montreal that prices have increased the most from 2020 to 2021, an increase of 6.85%. Nord-du-Québec, with its highest premiums, experienced the lowest increase, at 2.36%.


Split

Those who can choose will prefer to have their damaged vehicle repaired in Chaudière-Appalaches or in the suburbs of Montreal. These are the regions where repairs are the least expensive. On the other hand, Nord-du-Québec, Laval and West Montreal stand out with their higher prices than elsewhere in the province.


More disasters in Montreal

It is in the most populated urban areas that the most disasters occur, in particular the center and Montreal East (11.9%), the Laval region (9.76%), Montreal West (9.71%) and the Quebec Urban Community (9.6%).

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

The data is taken from 2021 Automobile Insurance Statistical Report published by the Groupement des assureurs automobiles (GAA) of Quebec.

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