Challenges with the Automobile Insurance Industry
The automobile insurance industry is in a current state of crisis.
Over the past several years, the industry has seen a drastic increase in the frequency and cost of automobile claims being made. There has been a rise in the amount of theft and vandalism claims, hail damage from storms has been more frequent and significant, collisions are occurring more often, and liability settlements and repairs costs are on the rise.
The Alberta government has refused the automobile insurers’ applications for an adequate rate increase, which has put additional stress on the industry.
Due to the relatively low automobile premiums being paid by consumers and the high amount of losses being paid out, automobile insurers have been suffering large losses. Many automobile insurers are taking action and putting restrictions in place to limit their automobile portfolio. Some of the changes and restrictions that we are seeing include:
If you currently have automobile insurance in place, there are several things you can do to protect yourself against the current market instability:
There is a great article in the Edmonton Sun that further explains the current automobile insurance industry crisis. To read it, please click here.
We also wanted to share a few facts regarding automobile insurance that you may or may not be aware of:
If you have any questions regarding the above information, or if you would like to review your automobile policy, please do not hesitate to contact us and one of our knowledgeable Brokers would be happy to assist you.
The Costen Insurance Team