LowestRates.ca, an online recommendation site for personal finance products like insurance, mortgages, loans and credit cards, has released a report that finds auto insurance has been trending upward in three major Canadian provinces,
Rates increased by 3.57 per cent in Ontario, 0.24 per cent in Alberta and 1.79 per cent in Atlantic Canada.
When compared with this time last year, Ontario saw the steepest rate increase at 10.71 per cent and Alberta saw an annual increase of 6.70 per cent. Annual data for Atlantic Canada is not yet available.
As auto insurance rates continue to rise, Canada has also become the first G20 country to legalize recreational cannabis. LowestRates.ca found that a staggering 91 per cent of Canadians do not know how the legalization of cannabis will affect their rates. Millennials (94 per cent) are the least certain of the potential impact.
A study released in October by the Insurance Institute for Highway Safety gives some insight into what could happen: it found that U.S. states that legalized cannabis have accident rates that are 5.2 per cent higher than neighbouring states. If legalization leads to an increase in impaired driving and more accidents, it’s likely that rates will see an increase in Canada, as well.
“It’s a time of unknowns in the Canadian insurance industry,” said Justin Thouin, co-founder and CEO of LowestRates.ca. “The potential effects of cannabis legalization have shown Canadians the importance of educating themselves on not just insurance, but personal finance as a whole.”