Why do my insurance rates just keep going up?

Unfortunately, insurance companies can’t foretell the future. The best they can do is make an educated guess on the volume of future claim payouts to determine what they should collect in premium.

These educated guesses can be different for every company, but the main focus is on the trend of claims. More claims = higher rates. If these companies don’t collect enough premium, eventually they will end up in a position where they cant afford to pay claims.

The Insurance Bureau of Canada tracks catastrophic losses to help us better anticipate what’s to come in the future. Unfortunately, their records show that severe weather related events are on the rise in Canada

You can read this for yourself at www.ibc.ca/ns/resources/industry-resources/insurance-fact-book

Sadly, with their records considered, Alberta appears to be getting the worst of it. Out of the 12 most costly  catastrophic loss events in Canadian history, eight of them occurred in our province. With this trend expected to continue, there is nowhere for our premiums to go but up.

We understand that this isn’t welcome news, and we are here to help.

If you have concerns about the cost of your insurance, book a review with us. We can sit down and go over all the options.

tgarstad

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