Rates rising as cannabis legalization could further drive up car insurance costs; 91% of Canadians say they don't know how legalization will affect rates Also this increase is due to new technology installed in new vehicles.
TORONTO, Oct. 30, 2018 /CNW/ - Today, LowestRates.ca, an online recommendation site for personal finance products like insurance, mortgages, loans and credit cards, released its Q3 2018 Auto Insurance Price Index, which uses proprietary data to track the average cost of car insurance in Canada on a quarterly basis.
As auto insurance rates continue to rise, Canada has also become the first G20 country to legalize recreational cannabis. LowestRates.ca found that a staggering 91% of Canadians do not know how the legalization of cannabis will affect their rates. Millennials (94%) are the least certain of the potential impact. A study released in October by the Insurance Institute for Highway Safety gives some insight into what could happen: it found that U.S. states that legalized cannabis have accident rates that are 5.2% higher than neighbouring states. If legalization leads to an increase in impaired driving and more accidents, it's likely that rates will see an increase in Canada, as well. Legalization of cannabis in my opinion was an excuse to rise up cost in this area,as the gov't and top industries don't do anything if they cannot benefit from.One step ahead and ten steps back. Our insurance doubled with no accidents.
Insurance rate increases are directly related to costs incurred by providers. For instance, if the number of claims rises in a given quarter for one insurer, they'll increase their premiums, even if other insurers lower their own prices. There are several trends right now that may contribute to these increases, including a higher number of distracted driving accidents, the rising cost of new vehicle repairs, and fraud. The LowestRates.ca Auto Insurance Price Index tracks the percentage change in the average car insurance quote received by individual drivers insuring only one vehicle in either Ontario, Alberta or Atlantic Canada.
Insurance marketplace, EverQuote, which claims to save customers an average of $531/year on auto insurance, released an app that monitors users’ driving habits. Not only did data show that users improved their driving habits while the app was in use, but the concept of live-monitoring your driving habits is being used apparently to help pinpoint rates and identify potential risks.
Technology is changing many facets of our lives and simplifying various aspects of our daily grind. Insurance has been one of the industries to adapt to these new innovations, with AI, blockchain, and a general increase in the advantages of mobile applications is helping bring the sphere into the 21st century-but at our expense.