By CRM staff
Toronto, Ontario – April 25, 2019 – While there are a number of reasons why insurance rates can increase, LowestRates.ca, says the increase that Alberta and Ontario drivers are seeing could be a result of insurers pulling out of the business.
In the Q1 report conducted by LowestRates.ca, Alberta has experienced the largest increase of 11.22 percent, while Ontario has been experiencing a 9.06 percent increase.
"Auto insurance rates have been on the rise for more than a year now, and this happens for a number of reasons that are typically outside of the average driver's control—more instances of fraud and a greater number of accidents, for example," said co-founder and CEO of LowestRates.ca Justin Thouin. "While overall rate increases won't affect every driver, if you are affected, this is a great opportunity to shop around for more competitive insurance plans. Most drivers could save quite a bit on their auto insurance if they spent more time comparing rates."
According to the comparative insurance site, insurers they have spoken to say, they have been paying out more in claims than they were taking in from premiums. As a result, some insurers have had to pull out from the business. In the past year, Esurance and AIG Insurance have departed from Canada.
A few weeks ago, the Ontario government announced plans to introduce new insurance policies, which was praised by Thouin.