skip to main content
Travelers Logo
  • About
  • For Brokers
  • Contact Us
  • Careers
  • Français
Français
Main Navigation
  • For Individuals
      • Insurance for Individuals
      • Car
      • Home
      • More
      • New Home Warranty
        • TRU Builder™
        • Buyers & Homeowners
        • Builders & Developers
        • More
      • Services
        • Payment Options
        • Why Credit History Matters
    • Learn more

      You're a Safe Driver. Why Not Get Rewarded for It?

      IntelliDrive® is an auto insurance program available for customers in Ontario. 

      Learn more
  • For Business
      • Commercial Insurance
      • Industries
        • Business and Professional Services
        • Construction & Contractors
        • Hospitality
        • Manufacturing
        • More
      • Management & Professional Liability
        • Crime
        • Cyber
        • Directors and Officers Liability
        • Employment Practices Liability
        • More
      • Surety
        • Contract
        • Commercial
        • Developer
        • Project Loss Insurance
      • New Home Warranty
        • TRU Builder™
        • Buyers & Homeowners
        • Builders & Developers
        • More
      • Services
        • Cross Border Solutions
        • Risk Control
    • Learn more

      5 Ways to Use Digital Marketing to Grow Your Small Business

      Learn how to use digital marketing to help grow your small business.

      Learn more
  • Claim Centre
      • Claim Centre
      • Report a Claim
      • Claim Process
      • Frequently Asked Questions
      • Claim Support Materials
      • Recommended Repair Facilities
      • Recommended Treatment Facilities
      • Understanding Your Tow Rights
      • Report Fraud
      • CAT Response
    • Learn more

      Claim Process

      Navigating the claim process is easier if you know what’s ahead. Learn about what’s next after you file a claim.

      Learn more
  • Prepare & Prevent
      • Car
      • Home
      • Business
      • New Home Warranty
      • Weather
      • Insurance 101
    • Prepare and Prevent

      Prepare & Prevent

      Tips and expertise to help you protect your business and prevent risks at home and on the road. 

      Learn more
  • About Us
      • Our Story
      • Leadership Team
      • Corporate Governance
      • Newsroom
      • Financial Strength
      • Broker Compensation
    • Learn more

      We’re Travelers Canada

      Our team of 1,400 employees work every day with one common goal — to support our brokers and customers across Canada when they need us most.

      Learn more
  • For Individuals
    • Insurance for Individuals
    • Car
    • Home
    • More
    • New Home Warranty
      • TRU Builder™
      • Buyers & Homeowners
      • Builders & Developers
      • More
    • Services
      • Payment Options
      • Why Credit History Matters
      • Find a Broker
  • For Business
    • Commercial Insurance
    • Industries
      • Business and Professional Services
      • Construction & Contractors
      • Hospitality
      • Manufacturing
      • More
    • Management & Professional Liability
      • Crime
      • Cyber
      • Directors and Officers Liability
      • Employment Practices Liability
      • More
    • Surety
      • Contract
      • Commercial
      • Developer
      • Project Loss Insurance
    • New Home Warranty
      • TRU Builder™
      • Buyers & Homeowners
      • Builders & Developers
      • More
    • Services
      • Cross Border Solutions
      • Risk Control
      • Find a Broker
  • Claim Centre
    • Claim Centre
    • Report a Claim
    • Claim Process
    • Frequently Asked Questions
    • Claim Support Materials
    • Recommended Repair Facilities
    • Recommended Treatment Facilities
    • Understanding Your Tow Rights
    • Report Fraud
    • CAT Response
      • Find a Broker
  • Prepare & Prevent
    • Car
    • Home
    • Business
    • New Home Warranty
    • Weather
    • Insurance 101
      • Find a Broker
  • About Us
    • Our Story
    • Leadership Team
    • Corporate Governance
    • Newsroom
    • Financial Strength
    • Broker Compensation
      • Find a Broker
    • Find a Broker
  • Home
  • Prepare & Prevent
  • Car
  • Why Are Auto Insurance Premiums Going Up and What Can I Do About It?
Get a Quote*

HUB Insurance Hunter

HUB Insurance Hunter is an independent online insurance brokerage. Its team of insurance brokers helps Canadians compare rates and save money on car, home and other types of insurance. Get help purchasing a policy from a dedicated, fully-licensed insurance professional.

Close
Powered by HUB Insurance Hunter
Auto

INDIVIDUAL

Or Call 1.866.274.9128 to get a quote.* Retrieve a saved quote
Find a Broker Near You
Find a Broker

Travelers Canada is proud to work with the finest Independent Brokers

Why Are Auto Insurance Premiums Going Up and What Can I Do About It?

Couple reviewing an insurance policy Couple reviewing an insurance policy

If you’re like most people, you’re probably asking yourself:

  • Why are car insurance rates go up?
  • Is there anything I can do to lower my auto insurance rate?

In this article, we’ll discuss factors affecting the market, ways to help lower your auto insurance rate and explain how optional coverage packages could help reduce out-of-pocket expenses in the event of a claim.

Why Are Car Insurance Rates Going Up?

There are many reasons for the current auto insurance rate increases across the country. Here are some of the notable ones:

Severe Accidents

Stats from Transport Canada show a rise in the severity of automobile accidents. In fact, the number of serious injuries, total injuries and fatalities all increased in 2021 compared to 2020.1

Increased Vehicle Value

Another contributor affecting the auto insurance market: The value of most vehicles — both new and used — is going up. In fact, used car prices are up 50%; new car prices are up 35.5%.2

What’s causing this? Like many of the other price increases happening in Canada and around the world today, there has been a rise in the demand for cars, SUVs and trucks — and their parts — at a time when supply is going down.

People still want new vehicles for the reasons they always have:

  • Replacing cars that are aging out.
  • Expanding families.
  • Indulging passions for cars.

Vehicle supply is down in large part because key materials like semiconductors, which are needed for the computers found in cars today, experienced a manufacturing interruption in recent years.3 Although manufacturing has resumed, the current supply still runs short of demand.

More expensive cars and parts also make repairs and replacements costlier. As of August 2022, the cost of parts, maintenance and repairs were up 7.9% year over year.4 This is another factor affecting the auto insurance market.

Additional Factors That Could Impact Auto Insurance Rates

There are other factors not related to national and global events that could increase your auto insurance rates:

  • If you’ve made claims on your policy in the last year.
  • If you or anyone on your policy received a speeding ticket or other driving citations.
  • A higher number of claims in the area you live in indicates that there may be more accidents related to weather changes, higher theft rates, more incidents of vandalism or other issues that the insurer must cover.
  • If you moved to a higher risk area than you previously lived in.
  • You may have taken advantage of insurance discounts in the past that you no longer qualify for.*

What You Can Do to Reduce Your Insurance Rates

While some insurance price increases are out of your control, there are things you can do to help get them in check.

  • Practice safe and sound driving habits. Make sure everyone on your policy follows all the rules of the road and drives carefully, especially in difficult conditions and bad weather. This will help avoid tickets and accidents that could up your premium prices.
  • Sign up for telematics. If you and the people on your policy drive safely and carefully, why not use it to save money? Telematics collects information about your driving habits in real time. By enrolling in a telematics program like from Travelers, you could save on your car insurance policy’s first term. At renewal, safe driving habits can lead to savings, though riskier driving habits may result in a higher premium.**
  • Review coverage. If you haven’t checked your auto insurance and other coverage lately, review it with your insurance broker. They may find that you’re carrying duplicative or unnecessary protection. Additionally, they might be able to offer some ideas on how you can make your coverage more affordable.
  • Raise your deductible. Often, increasing your deductible can help lower premiums. However, remember that you will be responsible for the deductible out-of-pocket and must always have enough cash on hand to cover your deductible if you need to make a claim.
  • Look for discounts. Check to see if you are eligible for discounts like multiple vehicles, dual coverage or clean driving. Your insurance broker can help you find ways to save.

The Bottom Line

Talk to your local independent broker to make sure that you have the coverage you need. To learn more about car insurance or ways to stay safe on the roads check out our Prepare and Prevent.

 

Sources:

1 https://tc.canada.ca/en/road-transportation/statistics-data/canadian-motor-vehicle-traffic-collision-statistics-2021 

2
https://financialpost.com/transportation/autos/why-cars-so-expensive-canada-today 

3
https://www.statista.com/statistics/1288308/automotive-production-reduction-semiconductor-shortage/ 

4
https://www.statcan.gc.ca/o1/en/plus/1965-auto-tune-maintenance-and-repair-prices-and-job-vacancies-increase-2022
*Discounts may vary by province and individual risk characteristics. Discounts are subject to eligibility, availability, do not apply to all coverages, and are not guaranteed.
** Riskier driving habits may result in a premium increase up to a 10%.
This document is provided for informational purposes only. It does not, and it is not intended to, provide legal, technical or other professional advice, nor does it amend, or otherwise affect, the provisions or coverages of any insurance policy or bond issued by Travelers Canada. Availability of coverage referenced in this document can depend on underwriting qualifications and relevant laws and regulations. Travelers Canada disclaims all warranties whatsoever.

The use of any services or the implementation of any product or practices referenced in this material is at your sole discretion. In no event will Travelers Canada or any of their subsidiaries or affiliates be liable in contract or in tort to anyone who has access to or uses this material for the accuracy or completeness of the information contained herein. This document is not designed to be comprehensive and it may not apply to your particular facts and circumstances. Consult as needed with your own legal advisor or other professional advisor regarding the sufficiency of any resources referenced herein.

Related Content

  • 3 Second Rule for Safe Following Distance
  • Dangers of Distracted Driving
  • Tips for Handling a Tire Blowout

See All Car Content


Travelers logo

© 2025 The Travelers Indemnity Company. All rights reserved. Travelers and the Travelers Umbrella logo are registered trademarks of The Travelers Indemnity Company in Canada, the U.S. and other countries. Travelers Insurance Company of Canada, The Dominion of Canada General Insurance Company and St. Paul Fire and Marine Insurance Company (Canada Branch) are the Canadian licensed insurers known as Travelers Canada.

  • Travelers on Twitter
  • Travelers on Facebook
  • Travelers on LinkedIn
  • Travelers on Instagram
Français

Products & Services

  • For Individuals
  • For Business
  • Claim Centre
  • Prepare & Prevent

Our Company

  • Why Travelers
  • Careers
  • Community Involvement

Connect

  • Contact Us
  • Payment Options
  • Why Credit History Matters
  • Find a Broker

Legal & Compliance

  • Terms & Conditions
  • Accessibility
  • Privacy & Security
  • Cookie Settings
  • Legal Notices
  • Consumer Complaints
  • Consumer Code

*For new customers only. If you are currently a Travelers Canada customer, please reach out to your current broker.

Online quotes are currently available for Ontario only. For provinces other than Ontario, quotes can be obtained through your independent broker.