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Discussion Starter #1
Greetings,

I received my annual auto and home insurance renewal and the premiums have increased quite a bit for so apparent reason.
When I called, they told me (I'm with TD) that there has been a general across-the-board increase in auto and home insurance premiums in Ontario.
All drivers and home owners policies have been increased between 2009 - 2010.

Is this true or are they BS-ing me?

-Harold
 

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Greetings,

I received my annual auto and home insurance renewal and the premiums have increased quite a bit for so apparent reason.
When I called, they told me (I'm with TD) that there has been a general across-the-board increase in auto and home insurance premiums in Ontario.
All drivers and home owners policies have been increased between 2009 - 2010.

Is this true or are they BS-ing me?

-Harold
I received renewal of Belair direct insurance in the mail yesterday. Home Insurance has gone up 14%. Auto insurance up 23%. No reason why there should be such an increase (such as an accident or a claim). Others, care to share what kind of increases they are seeing?
 

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Discussion Starter #4
10% increase in auto. 20% increase in home.
So looks like I'm not the only one.
Regardless, this is complete BS and just another example of pillaging the pockets of family households and consumers during such tough economic times.
 

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10% increase in auto. 20% increase in home.
So looks like I'm not the only one.
Regardless, this is complete BS and just another example of pillaging the pockets of family households and consumers during such tough economic times.
I should clarify that last year I switched from Co-Operators to Bel-air last year and my premiums dropped quite a bit. Don't remember exactly how much... probably close to 30%.
 

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My monthly auto insurance rate went up from $200/mo to $214/mo (7% increase). I haven't seen my home increase yet.

My wife and I have perfect driving records (no accidents, no tickets).


K.
 

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It's not entirely BS, but you should feel free to challenge the specific increase you have received. One way is to go to your insurance company's web site and ask for free quotation, as if you were a new customer, and see if it's lower than what they are quoting you for renewal.

The reason it's not all BS is that insurance companies obtain revenue from their investments as well as premiums. When times are good they keep premiums down to keep market share, covering the shortage in claims costs with their investment income. When the market crashes all of a sudden they have to jack rates to cover claims, as well as to restore the capital reserves they are required to have. This happens every time there is a big market downturn.

Also, a number of big international Re-Insurers got into serious financial difficulty last year. So the cost to Canadian Companies of buying re-insurance has gone up significantly.
 

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Discussion Starter #9
The reason it's not all BS is that insurance companies obtain revenue from their investments as well as premiums. When times are good they keep premiums down to keep market share, covering the shortage in claims costs with their investment income. When the market crashes all of a sudden they have to jack rates to cover claims, as well as to restore the capital reserves they are required to have. This happens every time there is a big market downturn.
So essentially what you are saying is that you and I must pay for their stupid investment mistakes.
So now it's no longer about insuring my car or home - it's more about the vagaries of the stock market.
And you are saying it's not BS?
I don't mean to pick on you personally, just that the end consumers seem to be taking it in the arse left, right and center for all this mess in the last 2 years.
 

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I don't mean to pick on you personally, just that the end consumers seem to be taking it in the arse left, right and center for all this mess in the last 2 years.
This is always the case. I have argued left and right that companies do not pay taxes, do not pay for their customer's bad loans, do not pay for any of their mistakes ... consumers and individual tax payers pay all this, and they always will.

Whenever you hear a politician say that companies should pay more tax, that the banks should be the ones to pay for the bad loans they make, that this cost should be born by the businesses that benefit... get ready, your costs just went up.
 

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Discussion Starter #11
A private enterprise should have every right to charge its customers whatever the hell they want.
But then as a customer I should also have the same right to tell them to (using bean's terminology from the other thread), GFY.
It is when businesses are given that right, but consumers are denied that right by oligopolistic companies and price fixing, is when it sux.
And we have several of these - insurance, telecom, media - to name a few.
They are no different than cartels.

It is amazing how the economic indicators and the govt. keep screaming that there is no inflation in the economy and in fact, there is possibility of deflation.
Yet, all I need to do is look at my monthly household expenses and see how that is all BS.
Between fall of 2008 (nearabouts when all this started) and now, my basic essential household expenses like groceries, gas, insurance, etc. have steadily gone up.
Actually at a higher rate than last several years when we were supposed to have regular inflation (in the 2% - 3% range).
 

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We have perfect driving records and no claims for property insurance yet we have seen annual increases each year for the past several years. Since about 2003 we have switched insurers every year chasing lower rates. It's time and energy consuming, but I don't feel like I have a choice - I feel taken advantage of when I get a rate increase upon renewal for no reason.

We most recently switched insurers in January and the insurer we have switched to won't even write annual policies anymore (we prefer to pay for the year upfront). The longest they will go is 6 months and I am sure that this is so that they have the opportunity to re-visit the premium they charge more often.
 

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I'm sorry people but this in not a new trend in insurance. I'm sure there's a research study somewhere paid by insurance that evaluates what percentage of increase overcomes our natural tendency towards inertia.

Most people will grumble but not even compare rates year after year. We all know the magic of compound interest. This is how they make it work against you.
 

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For cars, this makes me more interested in the concept of pay-at-the-pump and other forms of pay-as-you-drive insurance. Insurance premiums are loosely tied to the amount you drive, based on your estimates, but estimates can be way off.

For urban dwellers, rising insurance premiums make alternatives such as car-share programs (zipcar, communauto, etc.) more interesting because there you really do pay insurance only for the amount you drive. I have been seriously considering selling my car and going with Communauto for several years now, and this might push me over the edge. You pay a one-time fee to join and then a small annual membership fee, plus you pay per use. It works out to way less than owning a car, especially when you consider maintenance, cost of snow tires, insurance, etc.

The big thing you lose is convenience, and that's what has kept me from taking the jump. But I'm still thinking about it.
 

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Brad - we've thought about this many times in my own household as well. We have one car, which we drive infrequently.

What has us keep the car as opposed to moving entirely to a car-sharing service is that we have two kids (only one of whom is in a carseat now) -- and the concern about by how much our insurance premiums might rise if we have a long stretch with no insurance.

However, now that I type that out, I can see it doesn't have much validity. I think we might re-visit this again when both kids are out of carseats and more mobile on their own. We are all avid cyclists - my husband teaches urban cycling courses through Can-Bike.
 

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I think we might re-visit this again when both kids are out of carseats and more mobile on their own. We are all avid cyclists - my husband teaches urban cycling courses through Can-Bike.
Cool, same here. We live right on the bike path, and I find I can get most places in town almost as quickly by bike as by car, mainly due to no time stuck in traffic and no time spent looking for a parking space. We do most of our food shopping by bike in summer and by Metro in winter.

There's a Communauto spot about a five-minute walk from our house, and I only drive my car a few times per month, so it really would make sense for us. Apart from the convenience, the issue that I don't like about car-sharing is that you need to bring the car back by a set time, especially if someone else is reserving it. That means if you're having a nice weekend lunch with friends and you want to stick around and chat longer, you're out of luck. But I could probably live with it.
 

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Yikes. People complain about government meddling in insurance, but I just can't see how anyone would prefer to deal with big insurance companies. In Manitoba all basic car insurance is through Manitoba Public Insurance. My premiums haven't gone up in years, and we're not expecting any change in 2010.

To top it off, the last time MPI took in more money than they needed, we all got a refund check half-way through the year.
 

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For some of us that just can't do without a car because of our work it really sucks to be hit with a premium increase.

I know it's not green but I hate public transit. I just don't like being that close to a bunch of strangers. Not only that but it takes forever to get anywhere from where I am.

Cycling is great but has severe limitations I rode my bike to school several years when I was in college. It's freaking cold in the winter and it's winter 6 months of the year here. It is actually faster than the street car.
 

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Yep. Faster than the street car for me.

I am a year-round cyclist but this winter I am stuck on public transit...because I completely destroyed my knee playing soccer in the fall, and wasn't going to risk re-injuring my knee before I get it surgically repaired sometime this spring.

Bums me out, too; because this was a fantastic winter for cycling in Toronto...almost no snow!
 

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For some of us that just can't do without a car because of our work it really sucks to be hit with a premium increase.

I know it's not green but I hate public transit. I just don't like being that close to a bunch of strangers. Not only that but it takes forever to get anywhere from where I am.

Cycling is great but has severe limitations I rode my bike to school several years when I was in college. It's freaking cold in the winter and it's winter 6 months of the year here. It is actually faster than the street car.
Pshh.. Toronto winters aren't that cold or long. I don't even bring my winter jacket when visiting in the winter.

Also, be glad you're probably not a male under 25. You probably pay less than me for your insurance.
 
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