Auto Insurance Canada

According to http://www.tillsonburgnews.com/ArticleDisplay.aspx?e=2867169 – fraud is a huge cause of high prices.

Actions taken by the Canadian government about seven years ago helped to bring insurance rates down. Unfortunately, the same government has begun to lose touch with the factors that are influencing the cost of auto insurance. Unfortunately, the end result is that insurance rates appear to be on the way back up, which is an unfortunate fact for Canadians who live in areas where driving is a virutal necessity in order to get things done.

During the period between 2007 and present day, the insurance rates in Canada have climbed by a total of $162 each year. The situation is especially bad in Ontario, where the premiums are over a third higher than they are in Alberta, and almost twice as much as they are on Prince Edward Island.

A major cause of these increases is an increase in the cost of each claim. On average, the cost of each claim last year in Ontario was $53,000. Only five years ago, that price was $30,000. In Alberta, the cost per claim is drastically smaller, only $4,000. It is unlikely that this is the result of bad driving or bad roads. The more likely culprit is insurance fraud.

Even with all of the premium increases, the insurance industry actually lost money, a total of $390 million dollars. Ontario was the only province where the industry did not earn a profit. Waste and blatant fraud are a likely cause. The solution can only be solved with better regulation.