It’s no surprise that Alberta residents have seen their auto insurance rates rise come renewal time. So why the pressure to increase? Research suggests is comes down to three factors: more crashes, damage and injury claims, and higher costs associated with these claims.

More Crashes

In 2015, there were 140,705 reported traffic collisions in Alberta, and these numbers are on the rise. More collisions mean more claims, which can lead to a depletion of resources on the insurance companies’ end.

More Claims

As more people are making auto claims, insurance companies need to make sure they are able to keep up with the increased volume. Unfortunately, that usually comes in the way of price increases.

Higher Costs of Claims

As the cost of damage and injury claims rise, insurance companies will raise their rates in order to cover the additional outgoing costs they are seeing in payouts.

What Can You Do?

While you can’t always escape a price increase, you can make sure you’re taking advantage of any rebates or special programs you qualify for. Edmonton based insurance brokerage ARC Insurance discusses some steps you can take to try and lower your insurance bill each month in a recent blog post. Something as simple as parking in your garage can save you money!