Header bg
  • section background

    Why Has My Insurance Premium Gone Up?

    Hero bg 2
    pexels-sam-lion-5710198

    From natural disasters to market trends, there are a number of reasons why your insurance renewal premium may have gone up, even if there have been no changes to coverage or claims made. In this article, we’ll be explaining some of the different possible reasons that your insurance renewal premiums may have increased. 

    Get Tenant Insurance in less than a minute

    Get no-nonsense coverage that's the best value for your money. Purchase policies starting at $11/month, receive your documents instantly, and save when you buy online.

    Get a free quote

    4.7 rating

    Google Logo

    Market Trends

    The insurance industry is subject to market fluctuations. Even if you haven't made any claims or adjustments, external factors such as overall market conditions can impact renewal rates. Increased costs in the insurance industry due to various factors like inflation, changes in regulations, or economic conditions might result in higher renewal rates.

    According to Statistics Canada, inflation in Canada has seen a cumulative increase of 8% in construction costs and a 7.4% rise in housing material prices over the past two years, significantly impacting the cost of tenants' insurance. These sustained inflationary trends are leading to higher premiums for renters as insurers adjust to cover the escalating expenses associated with property coverage.

    External Factors

    External events, such as natural disasters or large-scale incidents, can have far-reaching effects on insurance rates. Even if you haven't been directly affected, these events can impact the broader insurance market, leading to adjustments in renewal rates.

    Catastrophic events, regulatory changes, or global economic shifts can all influence insurance pricing, indirectly affecting your renewal rate. Recent natural disasters in Canada, such as flooding in Ontario and wildfires in British Columbia, Alberta, and Nova Scotia are causing significant impacts on home insurance rates and coverage availability. These events highlight the increasing vulnerability of Canadian homes to extreme weather events and emphasize the importance of comprehensive insurance coverage.

    Industry-wide Changes

    Insurance companies often adjust their rates based on industry-wide trends and data analysis. Even if your individual circumstances haven't changed, the overall risk landscape might have shifted, affecting renewal rates for all policyholders.

    Rising claim costs across the industry can influence renewal rates, as insurers adjust premiums to cover potential future claims.

    Risk Assessment

    Insurance companies continually reassess risk factors associated with different policyholders. While you may not have made any claims, changes in risk assessment models or updated data analysis could result in a higher perceived risk for your policy, leading to a higher renewal rate.

    Factors such as demographic changes, geographic location, or updated statistical models might contribute to the reassessment of risk, impacting renewal rates.

    Underwriting Factors

    Underwriting criteria can evolve over time, leading to changes in how insurance companies assess risk. Even without visible changes on your end, updates in underwriting guidelines or risk assessment methodologies could influence your renewal rate.

    Factors such as claims experience across similar policyholders, advancements in technology affecting risk assessment, or changes in actuarial calculations might contribute to adjustments in renewal rates.

    APOLLO offers tenant insurance designed to protect renters across Canada. Get a free quote in less than a minute and we’ll send your policy documents right to your inbox.

    Get comprehensive Tenant Insurance for what matters

    Get no-nonsense coverage that's the best value for your money. Purchase in less than a minute, receive your policy instantly, and save when you buy online.

    Originally published April 2, 2024, updated April 24, 2024

    Back to APOLLO Magazine
    Share this article

    Get Tenant Insurance in less than a minute

    Get no-nonsense coverage that's the best value for your money. Purchase policies from your computer or phone, receive your documents instantly, and save when you buy online.

    Get Tenant Insurance in less than a minute

    Get no-nonsense coverage that's the best value for your money. Purchase policies from your computer or phone, receive your documents instantly, and save when you buy online.

    Relevant articles

    section background
    section background

    Getting insured is as easy as 1 - 2 - 3

    Tell us (very little) about yourself
    1

    Tell us (very little) about yourself

    Just tell us your address, your name, email and phone number. And that's it. We'll give you a price in less than a minute.

    Pay online easily and securely
    2

    Pay online easily and securely

    You can choose to pay monthly or save money by paying for the entire year in one easy payment.

    Get your documents in your inbox - instantly
    3

    Get your documents in your inbox - instantly

    As soon as you complete your purchase, you'll find your proof of insurance and policy documents waiting for you in your inbox.

    Get covered today - it couldn’t be easier

    We’ve provided more than 1,000,000 quotes to Canadians just like you. Give it a try!

    Google Logo

    Reviews

    4.7 rating

    1,781 reviews

    view all

    Across Canada

    Contact Us
    Apollo logo

    © 2024 APOLLO Insurance Solutions Ltd.

    111 Water Street, Unit 210, Vancouver, British Columbia, V6B 1A7

    APOLLO Insurance Agency Ltd. (o/a APOLLO Brokerage in the province of Ontario only) is a licensed retail brokerage, offering our clients with a comprehensive set of insurance solutions to meet their individual needs. APOLLO Insurance Agency Ltd. maintains necessary corporate licensing in provinces across Canada. Availability of products and service depends on licensing and product availability. The information that appears on this page is provided for information purposes only. Advertised products and prices are not guaranteed and vary based on insurance provider and/or insurance company's discretion and product availability.

    Transparency and Disclosure: APOLLO Insurance Agency's role is to provide you with exceptional service and the best insurance products that suit your needs. As a licensed retail brokerage, our compensation is based on a commission basis already built into your insurance premium and varies based on the product purchased through our platform. For a description of how APOLLO Insurance Agency is compensated and how this is calculated, please refer to our Compensation Disclosure document. For consumers in Ontario, please review the RIBO Conduct Fact Sheet and the RIBO Conduct Guidance document.