24 Apr Your car and your home are more expensive to insure? Here is why.
Have you received your auto or home insurance renewal and are a little in shock? You are not alone, this year, the entire country is facing increases in their insurance premiums.
These increases are, in part, attributable to severe weather but we need to also consider the significant increases in the costs to settle car and home losses.
In fact, we could summarize the whole thing by this assertion: Anything that makes our life easier costs more to repair or replace.
Let’s start with cars. Most new cars have sensors built into front and rear bumpers, in mirrors and even windshields. It has become more complicated and expensive to repair cars because the more the vehicle is « technologically equipped », the more time it will take to repair. In some cases, repairs will even require the intervention of more specialized technicians.
We see the exact same trend in homes. Finished basements now add living space, but what happens when there is a claim? The finishing materials, televisions, sound systems, and appliances are more and more sophisticated and cost more and more to replace.
And that is why, in part, your auto and home premiums are more expensive year after year.
Jackie Beaudoin, Leclerc Insurance and Financial Services
Source : economical