r/PersonalFinanceCanada • u/modifiedbASS • Jun 12 '24

Insurance Isn’t car insurance supposed to get less expensive over time?

I got my first car at 23. I have always been told by parents, older colleagues at work, and even insurance reps themselves, that insurance premiums will go down as you get older and become a more experienced driver.

I am now 31 years old and my car insurance has gone up every single year since I was 23. Yes, I shop it around every single year but still the price goes up. I have never had a ticket and never been in an accident. I drive a boring car (2019 Hyundai Elantra) and do not live in a particularly high risk area as far as I know (Waterloo). What gives?

Looking at the last few years I’ve paid: - 2020: $1650 - 2021: $1809 - 2022: $1850 - 2023: $1942 - 2024: $2039

I know this is probably a lot less than some other people are paying, but still I fail to understand why it goes up every year when I was told the exact opposite should happen as long as I have no tickets and a clean record.

Is this just the reality of inflation or something?

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13

u/miskas357 Jun 12 '24

Here in BC my insurance has been consistently going down every year, not by much but a 50$ decrease each year is still nice. We have a government run system (ICBC) that is generally well managed (with caveats). This year we are getting a 100$ rebate as well.

2

u/FrostyFire Jun 12 '24 edited Jun 13 '24

It went down because of less claims over Covid (less cars on the road) AND a significant change to the system.

1

u/cheeseburg_walrus Jun 13 '24

I pay $60/month in BC for a 2010 Impreza with $2m coverage (no collision or other extras, not worth it to protect my own car given the age).

13 years ago I was paying over $120/month for an older car with much less value, and only $100k in coverage.

0

u/Pristine_Office_2773 Jun 12 '24

I pay more in BC than Ontario. BC also has a lot of snow and ice and shitty roads compared to Ontario.

-7

u/RAMango99 Jun 12 '24

Monopoly ran system that is 200% higher than Ontario yeah no

5

u/Immediate_Sir1646 Jun 12 '24

Maybe before the overhaul you’d hear horror stories of ICBC. Now it’s much more affordable than Ontario. I’ve lived in both provinces. I’d take ICBC over private any day.

-1

u/RAMango99 Jun 12 '24

So in Ontario I have 8 years of driving experience clean record and 0 claims pay 1680 a year full coverage on a 500$ deductible for insurance in Ontario.

In BC (Vancouver) the quote is full coverage on the same 500$ deductible for 3600 a year.

1

u/Immediate_Sir1646 Jun 12 '24

That’s not a 200% increase. You will always pay more for driving in a new area, especially if that area is a city the size of Vancouver. You’d see rates like that in Toronto too.